"Rookie-2009"

Good morning, everyone.
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Option 2: We play the same Olympic-style tournament, but instead of the four losers immediately being eliminated, they play their own "mini-Olympic tournament" in parallel.
8 => 4 => 2 => 1
8 => 4 => 2 => 1
The winners play in the final, totaling +1 week.
Pros: This might be more interesting (more fun).
Cons: It takes a week longer; and personally, I don't quite understand the point of the first game, whether you win or lose – you still move on.
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I don't really understand the diagrams, but based on the description, it should look different. Maybe something like this:

Round 1: 8 games, resulting in 8 winners (hereafter "W") and 8 losers ("L").
Round 2: 8 games, with 4 in each group of W and L, resulting in 4WW, 4WL, 4LW, and 4LL (these are now eliminated).
Round 3: 6 games, WL and LW play against each other, the losers are eliminated, and WW also play against each other. As a result, we get 6 players with one loss (hereafter "L") and 2 with no losses ("W").
Round 4: 4 games, 3 pairs of L play against each other, the losers are eliminated, and the winners go to the losers' semi-final. W play against each other, the winner goes to the main final, and the loser goes to the losers' semi-final, where there are thus 4 players, each with one loss in the tournament.
Round 5: Losers' semi-final, 2 elimination games, the winners go to the losers' final.
Round 6: Losers' final, 1 elimination game, the winner goes to the main final.
Round 7: Main final.

I think if you draw a diagram, it will look much simpler.

The advantage is that there is a chance to correct one mistake, either your own or the generator's, that led to a loss (there is no such chance for a player who reaches the final without a loss, but their path to the final is shorter; in addition, the final can be played to 2 wins).
The disadvantage is 7 rounds instead of 4 in a regular Olympic-style tournament; the super-winner of round 2 sits around waiting for an opponent.