I think that that is a great idea, because i have seen people giving out passwords before. They sit at a table about an hour before the tourney starts, and give out the password to all of the people at the table. I saw one person do this. Somebody reported them, and they have been banned from
Noble I think, but that won't stop somebody else from doing it.
So all-in-all, a good idea, that will prevent password leaks, and non-contributing members from getting in.