I feel like perhaps the concept on what qualifies as "Powered" might be a little too vague.  To my mind, most of the characters I've seen would fall far above the level of what Innue described as "the mid to lower end of the second tier".  I've always thought the idea of a tournament was to submit balanced characters and let the writing decide the victor, not to have a contest of who can think up the more powerful character.

Personally, I feel that some powers should just not be allowed in a tournament, such as gesture-less magic, telekenesis and similar uncounterable effects, and self healing.