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As I understand it, the idea behind the tournament is to have final battles with full armies... lasting over a month... hence the time limit and the "handcuffs."
A tournament with a sponsor means they set the overall "ideology" of the tournament (time limits, mod, template) – it's their right, and there's no point in arguing about it.
It would be better to suggest a more sensible implementation of this idea (if I understood it correctly).
It's quite possible to encounter this situation even before (although it's not guaranteed, even if desired, but it happens). With a clear outcome of such a battle, I think the winning player would only need to briefly (no more than a week) intercept the opponent on their way to the castle, preventing them from running around and developing... and that's it. This is a perfectly viable implementation of the idea of a "long game on a large Labyrinth template." It may seem large and easy to get lost in, but it often resolves within three weeks.
"Handcuffs" haven't been happening that often lately... but in a mutually agreed-upon prolonged game, someone will inevitably find a way to use them... and so what?
It seems that the ban on Dark and Magic factions is partially beneficial. But they were also present in the original game with the Battle for the Pentagram expansion.
Well... are character descriptions expected?
And what about a vampire theme? Is that a joke?