Thankyou for running the tournament, I had fun participating!
As for the format I don't think steem lends itself well to organisation, you need some sort of different website to schedule individual matches within tournaments - particularly if they are to get bigger. (Similar to how aoczone does it)
I'm not really sure about settings to make it more fun for everyone involved however. Unless you use some really strict handicaps I don't think it's possible to create a setting where everyone has an equal chance to win. But then again tournaments aren't usually "fair" in that respect.
Best of luck figuring out something exciting for future tornaments!