Nothing of your arguments really touched the reasons why this tourney shouldn't have the king of setons title. Besides Morax as the player councilor and responsible for FAF tournaments overall explained it, you can host the tourney with another name and nobody has an issue with it. It is nice and welcomed that TD's are hosting tournaments, so nothing against you or this tournament otherwise.
As a simple comparison let's take a basic sporting event/competition, say 100 meters dash sprint race. The basic rule is that you have to run the 100 meters. Now suddenly someone is arranging an officially classed competition for 100 meters track sprint, but you are allowed to use an e-bike instead. The race results in the world record being broken by 3.1 seconds. How could people take the sport seriously after that?
The e-bike would remove the actual athletic performance from the equation and invalidate the whole 100 meters dash sprint race for everyone and all its history, it would be meaningless. This is a bit exacerbated, but in this comparison adding Nomads to the mix would have a bit of the same effect.