I guess it's fair enough I should respond quickly to this. Basically, FMC is an event where if one is to take it really seriously, one should be learning a lot more than [insert standard speedsolving method here]. I'm sure any top FMCer will say it is very different to a standard speedsolving method. But OH, other than maybe a few OH-specific algs, is the same thing with one hand.
In our competitions I see here and there people who use simple CFOP with PLL skip and get sub-35. Our NR (26 moves) is set with CFOP with OLL skip, though there is a splendid double X-cross.
So person who just try a bunch of CFOP solves with different crosses, pair order etc. can get a good result in FMC (or, more precisely, if a competition is full of such persons, then some of them most likely get good result).
I do agree with your events division by simple (3x3, 2x2, pyra) which should have very soft limits to encourage newcomers, middle (oh, 4x4, 5x5, bld) which should have some cut-offs (soft or hard, depending of the competition size, competition time etc.), and "complex" (sq-1, mega, clock, 6x6, 7x7...) which should have harder limits and cut-offs for several reasons: few people can scramble sq-1 and clock or sometimes mega, and 6x6 and 7x7 are long to scramble and to solve. Well, I don't agree that 2x2, 3x3 and pyra must necessarily have as many rounds as possible, let the organizer to decide this question.
I do not consider fmc in any events group described above because it is not speedsolving and has another nature. As many people said before me, a competitor in fmc doesn't waste competition time and only wastes organizer time. Therefore I think no additional limits should be applied to the one we already have.
And as for the "elite" cut-offs. Yes, you can say they are elitist. However, their existence does some profit to "non-elite" competitors too. Cut-off is the thing that allows holding more events. Suppose that you decide to make no cut-offs and to set limits to the default 10 minutes. Then you can find that you have time only to hold 3x3, 4x4 and 5x5. So everyone can make 5 attempts of 3x3, 4x4 and 5x5, and that's all. But if you set cut-offs, everyone can make at least two attempts in 4x4, 5x5, oh, clock, square-1, mega and so on. Diversity is cool.