The big plan in my head when I recommended this format last season was that everyone goes into the competition knowing exactly what they need to advance to the knockout round. In this case, all winning records (4-3 or better) advance, regardless of PD. But credit for what we have know should go to the inventor of Buzzerbeater Madness, for showing that this format was possible in the first place.
The one flaw as I see it is that there isn't a bigger reward for being the 7-0 team in the swiss. The alternative however would've been a 29 team bracket where the 7-0 team gets a double bye to the QF, which I think is too much of a reward. At least they do get two rounds against 4-3 teams as you pointed out.