Since I'm mentioned in Jeremy's post, and my response was not posted here, I'd like to quote it below for posterity.
Hi Jeremy. Thanks for joining the discussion. You must know I recognize and value your professionalism, or I wouldn't have asked DD to present my tournament in July. I also recognize you may be right about the proliferation in tournaments having an impact on attendance. After all, with tournaments practically every weekend, we can't play them all. Good luck to you with this event. I hope it is as big a success as you expect.
That said, I don't think the trophy only format for rec has resulted in less perception of a bagging problem at DD tournaments. The people I talk to (who now avoid DD events) all complain about the unrated players throwing one or more advanced rated rounds and running away with the trophies more often than not.
I was curious to see if that was true, so I looked at all of DD's tournaments since January 1 2012, which are supposed to be trophy only in rec. I'm not sure if that's true of the events "presented by" or "sponsored by" DD, but I have included those events in my analysis for now. I excluded the one round challenges from my analysis, because there's a lot of volatility in ratings that could produce a false impression from a single round. I also excluded supertour events, as only PDGA members can play those. What I found was that, out of 26 events, an unrated player took the rec trophy home 11 times. That's not half the time, but it's pretty close (42%).
As for those unrated players throwing advanced rated rounds, I saw five of those winners throw at least one round rated over 935 (i.e., 957, 954, 946, 939, and 939). So I think the perceptions held by the rec rated players who no longer attend DD tournaments are somewhat valid, and there is obviously still a problem that was not solved by making rec trophy only. If anything, I think the perception of the problem is that it is worse, as there can now only be one "winner" in rec, and the players rated below 850 feel like they stand no chance at all.
As I've said before, I think the only way to really deal with the problem is to prevent unrated players from playing ratings protected divisions. TDs have the discretion to force non-PDGA members to play a different division, and I think that's the way to go. Unfortunately, the PDGA prevents TDs from denying entry to rec to new PDGA members who don't yet have a rating. In order to really address the issue effectively, that rule needs to be changed. However, a TD can still drastically reduce the perception of bagging by at least requiring non-PDGA members to play in a non-ratings protected division for which they are otherwise eligible.