That is very similar to the format of a tournament I played on a cruise ship recently. And you are right, the luck factor is highly intensified.
That format was for six players per session, playing 7 rounds per session. You could buy back in as many times as you wanted; and they'd play for about an hour and a half each afternoon. Buy-ins were $15 for non players' club members, and $10 with the card. It also included a $5 match-play for the regular casino. I think I ended up playing in about ten sessions.
The winner of each table went onto the leader board if, and only if his total was in the top 6 for the whole tournament. Then, on the final day of the cruise, the top six totals went at it in one seven-round session.
It pretty much negated the at-the-table strategy for the session you were in; because after a day or so, the leader board was high enough that everybody just about had to bet big on every hand and hope for the best.
I won my table twice. Once with a total too small to get onto the leader board, and another time only to be knocked off the leader board in the next session. A couple of other times, shooting for the leader board may have cost me a chance to win my table.
There was one table where the dealer got three naturals in a row to start the game; and everybody wiped out, because they were all betting big. And there was another game where the second-place finisher on the table would have made the leader board had they setup the rules that way.
I had fun; and it served the purpose. However, I'd have prefered some sort of tiered progression deal, where winning your table gets you a seat in the next round, and so on.