In general, there are more tournament places than there are participants. Many tournaments go unfilled and there is usually a long and unpredictable delay in starting.
On top of that, search facilities for tournaments need improvement (e.g. tournament-filter--selection-wizard).
Raising the limit would appear to make the over-supply situation worse not better.
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I made a tournament yesterday, which will not start before 8 July. It already has 40 participants and will most likely be full within a few days. If more people are interested in the tournament than the maximum of 100 players I would like it if they could join.
So why is 100 players the limit and why not allow people to have huge tournaments and get as much people to participate in them as possible?
So my suggestion is to allow paid members to host unlimited tournaments.