I think we are kind of missing Joe's point. Of course no skater would rather win Cup of China than the Olympics. But the question is, what form of competition is best suited for determining a legimate "world champion" in figure skating.
Here are three models that we might consider.
(a) The round robin tournament. The Grand Prix is set up in this way, sort of.
(b) The current method. Each national federation sends its chosen representatives to a big international conflab..
(c) The "open" model. The top-ranked skaters all compete as individuals with no constraint on nationality. (This would diminish the importance of national championships.)
Unfortunately, analogies to other sports are not very useful. The NCAA college basketball tournament is spectacularly successful.

But figure skating is not basketball. In golf, the "world champion" is not the guy who wins any one particular event, but the guy who finishes on top of the money list.
All of these models have pros and cons. I don't think that one is necessarily more "sport-like" than another. One thing that I like about the round robin/Grand Prix model is that, to me, it gives spectators a more exciting ride for their money as they follow their favorites through the mine-field that leads -- maybe! -- to the finals.
Then again, I also like the heart-in-the-throat thrill of one big whoop, winner takes all, especially U.S. Nationals.

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