It's a garbage format with no redeeming qualities, nobody should be doing it and nobody should be telling others to do it.
This post gives two separate ways to make fair tournaments for lower rated players that does not require rating caps. If the people that end up signing up for a tournament on X weekend are not low rated, then low rated brackets don't exist.
The only events that got canceled for lack of players were events that shot for participation from groups hovering around 1k rating. If people want more players to sign up, we have a Discord ping for tournament signups that literally nobody uses and we have a news post that can advertise tournaments. Since the Discord role is rating-blind and this restructure of tournament formats would also turn many tournaments rating-blind and instead rely on signups to craft brackets, it synergizes well.