My background on competition is from a year of competitive ET:QW, with 2-3 leagues going at the same time, plus I watch a few starcraft matches and have looked at TF2 and CSS matches.  If you compare "spectator sport"-like games, starcraft is the most successful.  It isn't because of the graphics.  It's because the other spectator appealing games such as CS and TF2 featured very simple gameplay.  If you were a medic in TF2, you heal a soldier who shoots himself in the middle of the map to increase the rate of uber and then your team would ingage only when you have invincibility.  Rarely would a medic be doing something else.  A spy would almost always cloak and try to back stab or sabotage a sentry.  CS is pretty much a death match where battles are over in 3 shots.  Compare that to starcraft; not only are battles more than 5 seconds, the amount of successful strategies are just large by nature of being an RTS (also helps that it was the most balanced game ever).  And, as we can see, competition does help in a game's longevity (starcraft, 10 years old?).

Therefore i think competition should be a priority sometime in the near future.  Some ideas and how to execute them:

I think if demigod can get a nice spectator mode going with features like being able to flip to certain ppl/areas on the fly, a tv mode where people join tv servers to watch the game and chat, that would build the mass appeal for the competitive scene.  People of all sorts of skill levels would love to watch tournament finals (provided its scheduled in the right time zone).  Also, people would hold back on the cheating as they are being watched and recorded.

Now, you need commentators, and ones who know what they're talking about.  Usually these guys have their shoutcast streamed on their sites.  If demigod, by some miracle, can intergrate it into the game, that make it retarded easy to use, resulting in epic-uber win.  Also, commentary could give players the incentive to perform well, build rep and lessen the emphasize of prizes.  You can have a really important tournament every 3 months with a nice prize and to fill the gap, bi-weekly/monthly tournys. 

I believe that the quality of the commentator can be pivotal in the success of e-sports.  For example, the starcraft matches they have at gomtv.net feature a really awesome guy who knows the strats, technigues and knows his audience may need explanations of what the players are up to.  I personally wouldnt watch starcraft if all i was listening to was the ingame sounds.  Hes white and speaks english if you're wondering, so check that site out.

Also, the guys at http://www.enemyterritory.tv/ feature another really good white guy who goes by GreasedScotsman.  He runs the site and shoutcast ET:QW matches.  He's been at it for a year and a half now, I believe.  Commentary is great, knows how to fill in the downtime and is dedicated to his craft.  He was invited down to QuakeCon as media coverage, doing a great job of shoutcasting that tourny and Splash Damage (the makers of the game) have granted him priviledges to post on the front page of their offical community site.  However, the quake wars scene as been very dead as the number of teams have decreased since first season.  I believe season 4 is nearing the end, which i believe would be around may or june, and just like the last 2 seasons, the existence of the next one will be question able.  Someone doing PR for demigod at least approach this guy, send him a free copy or sumthing and see if he can be swayed into doing regular shoutcasts.  By the time the quake wars season ends, hopefully demigod has a good basis for competition and Greased can get into it.  Also, not to tell anyone how to make a game, but Greased has been doin this a while and im sure if you ask, he can give you a good idea of what a competition game should have and provide good points.

Also, pivotal in keeping teams in competition is to seperate the high caliber from the new guys.  I personally would have 2-4 divisions, depending on the amount of teams.  Clans would be put in each division according to how they are ranked, which would only take data from offical games, incorporating win/lose records and some kind of dominance rating like factoring time, average percent of map control during the game, kills + assist in certain time frames and perhaps a comeback rating like having low percentage of map control but winning.

Assuming Stardock/GPG want to host tournaments for their players, how it would play out in my mind is that clans just sign up and are placed in a tournament bracket, which can be viewed on the website.  Updates to the page would be made once teams have played and reported win or lose.

The tournament style is fine, but players who are knocked out should play the same amount of games as the finalist, if not more to increase their experience.  I think teams that have lost a game should play until they have won 1.  It allows the losers to play more games with someone relative to their level.  From a spectator's point, these loser matches can be a lead up to matches determining advancing matches, acting like an undercard.  It would also allow bench players to get in there and play as some players are tired of losing and since they cant advance in the tournament anyways, they substitute in bench players.  For the teams that lose their first but win their second, capping them at 2 games, they can challenge teams with the same tournament record to try and increase their tournament ranking.  The number of teams you can challenge depends on how games you've played already, so everyone plays the same amount.  Someone who has lost all their games or won all their games in a tournament of 8 plays 3 games, so if you lose once, win once, you can challenge only 1 team.  At the end when all the games are played, your tournament rank is shown and maybe your overall clan rank which factors in other tournaments.

i think a tourny of 8 teams could maybe done in a 2 day weekend.  Anymore and I would say spread it across 2 weeks or month depending on the amount of teams.  The schedule would be up to the paired teams to make, but it has to be within a timeframe.  Also, get into some kind of advertising.  Just as long as it's not intrusive or seems out of place, i wouldn't pay attention to it after the 10th time.  As prizes, your sponsers could provide them.

I actually glad that demigod has some hype but not too much as that would allow the first couple of months to patch it up, balance the game further and then get the PR/marketing team out there, selling something you know is quality.  I read somewhere that Stardock/GPG know they have a gem on their hands and if they really believe it and treat it like it is (not like how activition dropped support right after quake wars was released), I dont see how this game can fail to build its core of players to the proportions of starcraft and fill the niche that is a watchable e-sport in North America.

Just my 2 cents