I'm late to the party, but I do feel this is a great, impartial way to give everyone a fair chance. Being able to withdraw because you see too many entries, and go somewhere with fewer will even the bids out and make entrants feel like they have some control over their chances. I'm also a fan of the one entry per FC. Just like private buyers, if they don't win they can try again in the next round.
Excellent suggestion! Hopefully it gets noticed.