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To make it to the elimination rounds is a big deal for many teams. To make it into that top 8 or know that you are good enough for a team in the top 8 to pick you makes it prestigious. By adding more teams to the elimination it lowers that prestige knowing that many teams are going to be in the finals too.
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I definately agree with this. The whole purpose of getting into the elimination rounds is to show that you are in the elite group of teams at that competition(different at some regionals due to small size). I know it sucks when you feel that you should have gotten picked and didn't, but hey it happens to everyone. All in all more teams in eliminations would not only take more time, but you wouldn't really be in that elite minority.