No one-combo kills rule. Rules are placed to make it fair for each side. If one side completely dominates for most of the match, they should deserve to win, not get instantly KO'd by a single slip-up.
That also means set effects should remain off. I know every Yuki in the world does NOT want to see people running full Kanhel and getting full ice invincibility every xx seconds. Also because people who farmed for those amazing amounts of INT equips should keep them instead of just running 4x L.Drake, and because +50% AEH bonus is just overpowered.
On the whole, I'd rate the tournament a relative 4/5 for the amount of effort and organization put into this.