No, it would (only user controlled teams) ranked 1-256, 257-528, 529-768, 769-1024, etc.
Since your idea is for the winner of each tournament to play in a "winner's tournament", doesn't this give an advantage to the lower ranked teams? For example, ranked team #769 would be the favourite to head into the winner's tournament, but team #256 would have next to zero chance.
Unless you mean each pool would be something like this:
Pool A
#1
#257
#529
etc
Pool B
#2
#258
#530
etc
Run of the Mill Canadian Manager