Your 'open division' is the premier league, the place where heroes are made and dreams are crushed, where people spend every second min maxing their gear for that slight edge. This will be what everyone aspires to.
However if you include a 'recruit division', this will allow those who are a) not geared enough, or b) not quite skilled enough (like me :P) to gain some real practice at ranked, and even some bonus ranked comms for good measure. I would think you would get quite a few extra guilds involved then, who may not be quite ready/willing to try out the full league, but want to dip their toe in the water.
The biggest success factor to an ongoing league like this would be a continuous source of pvp talent who are ready to duke it out. All server pop issues aside, this would be a good way to do it.
Now it depends what others think, and if the organisers would want to take on the extra scope.
EDIT: I forgot to say, that the recruit league doesn't necessarily need to be streamed, but can run at the same time, just so there's some structure to it.