It might appear strange to top level wrestlers or people who are only looking at the medal rounds. There are a number of reasons why it is beneficial to parents/coaches worried about a whole team or program.

It allows tournaments to get done faster by
eliminating a round. The match count doesnt change but a round and the associated wait time is eliminated. Honestly when coaches enter seeding criteria how often do first round losers end up in the 3/4 match?

It also lets kids that arent as strong get a few extra matches at their level. It is hard to take weaker "varsity" kids to a JV tournament. The backside/consolation is a happy medium for our medium wrestlers.

It is probabaly good for mid level tournaments and events that have to end in one day.