[BigFatMeanie]

This was meant as a response to BlueHair:

Although you are correct that in order to win a championship you have to win every game, teams are compensated by how many rounds they last. A loss in the first round is more costly than a loss in the second round. A loss is a loss as far as winning the championship is concerned but the second round team makes more money.

Even though there can only be one winner, the seeding has a great impact on how much money your team makes and thus seeding is a big deal.