I don't think the DEP can legally discriminate against out-of-state clubs in granting tournament permits either. I think they certainly COULD impose a limit on the number of tournies held per year.
I think the majority of tournament guys do not properly handle their catch. I take every extra precauation to care for my catch during the summer, and I lose very few fish. People think stopping at the gas station and buying 10 pounds of cubed ice is sufficient during a summertime tourney. It is not. You need about 50 pounds of block ice to keep the water at the appropriate temperature all day long. Rejuvendae additive also helps immensely. The recirculate pumps should also run continuosly.