We could talk about the failures with the Faunus racism and terrorism all day. It's best to just ignore it. After all, the writers are ignoring it right now.RWBY Volume 3 was when the show started being shit rather than just cute animu snackfood. The tournament is but an example of this since it did every mistake bad shonenshit does (introduces a truckload of characters yet little few of them have any longterm relevance, the tournament has no wider importance in the setting).
Also, the tournament falls apart even further when you recall a terrorist major leader's daughter was in it. She didn't hide her surname.