When you die, you lose your ship right? What on earth would compel a team to enter a tournament unless they were sure they were in range of the top 4 spots?
Ships are not irreplaceable. If you play Eve, you WILL lose ships.
How isolated are these tournaments? Can random people just fly in and start messing stuff up? Can you run away if you're about to be killed?
The GMs move the teams to a specially isolated system where there is no way in and no way out. If you leave a certain radius from the center of the arena you are automatically destroyed. You can't return to the field after fleeing, so there's never anything to gain from running before doing as much damage as you can.
What are the limitations of the team? What's to stop a really rich team from having a better loadout? Or a really big team? Can you have a large team of cheap ships?
Different ships are assigned a point value, with a hard point limit imposed on each team. You can have a few expensive ships, quite a few cheaper ships, or some mix. It should be noted that both in terms of tournament points as well as in-game cost, the ability of a ship does not scale linearly with price. A ship that is 50% as expensive as another will probably be more than 50% as effective.
How many human players are involved in a battle.
Not sure what the hard limit on participants is, but I imagine that usually the limit is ship value as stated earlier.
Don't you think for streaming purposes they should remove the red/blue overlay which makes a cool space battle look like just a bunch of squares standing around if you don't know the game?
Doing so would ruin the value of the video broadcast for those who DO know what's going on. It would be reduced to a seemingly random video of shooting and explosions.
Hope I've helped.