I understand the #1 seed getting the automatic bid. I wish our district did the same. But to reward the #2 seed makes no more sense than rewarding the #6 team. To borrow words from Ricky Bobby, if you ain't first, you're last!
Most importantly, in this tournament the #1 seed has to win more games than the #2 seed (if they both win the first round game) to win the tournament. Yes, they already have the automatic bid, but would you rather host the first round region game against the #2 seed from the other district or go on the road to the #1 seed from the other district? Personally, I would rather host and play the #2 seed than go on the road and in all probability face the lefty from Columbia.
If the #1 seed loses the first game, they get a bye in the loser's bracket. What's the difference?
What if the 1, 4, and 5 seeds win the first games. Then the 4 seed gets a bye to the winner's bracket finals? That's not right. IMO, region bids shouldn't be "easy" for anyone to attain. Winning the regular season is very difficult, especially in your leage where they play so many district games, so they should be rewarded. Everyone else, however, should have to battle it out on a level playing field.