I agree it seems silly, although for me personally, I enjoy having an am merch payout because it's something that kind of marks that I'm improving, at least to me. One of my favorite discs is a blue D2 I got with part of my first (and thus far only) payout from a tournament. It also let me try a D2 "for free" [yes, part of my entry fee, but I played more to play in the tourney and get rated rounds and the payout was just bonus], which is pretty awesome. So for me, I'd be somewhat disappointed if I cashed at Ledgestone to only be able to pick from Discraft, but I'd just load up on molds of theirs which I'd like to try out. Now, if I'd already tried a bunch of Discraft molds or had a payout of a couple hundred bucks, I'd be slightly annoyed at the limited selection.
And I'll go ahead and add my personal anecdote about trophy-only events. One of my favorite tournaments I've played (and will be playing again since it lines up with my spring break) is the IDGC Amateur Championships, which is trophy only and a huge player's pack. I remember the last time I played it, the player's pack was a nice disc storage box (which I still use), L64 disc with tournament stamp (I got a Mercy, which I'd wanted to try out), old PDGA DVD (I got the Highbridge Worlds one), course directory, plus some other smaller swag items and food etc. I've also played the Pam B Childs Memorial down there, which is the same sort of thing except it's a fundraiser tournament, and they're both really enjoyable to play in. Personally, I'm good with a tournament T shirt or stamped disc or a pro shop voucher. The Upstate Club locally used to, and I think still do, do a merch voucher as your player pack. That way they make the $$$ from the wholesale price of the disc you pick out and you'll get something you'll throw, which is a win-win as well.