I was trying to think of way to combine the two but do as you like, I was just throwing out ideas.

Playing each player only once and not best out of 3 isn't the best I think and let alone having to play everyone in their tier especially if you have alot of people in the tier. That's why I said a cap amount of players in each tier before that player can be regulated at the end of a season. Having an ELO rating and win/losses is best because it gives an idea if that player has more or less losses/wins against higher or lower ELO opponents and allows people to be ranked by ELO rating in their tier.

Your way works for course, but maybe not the most satisfying way. I'll still play in it reguardless.