Our tournament system is based on the same system that theirs was based on Milt's(Pokey) Tournament system. Blaise's image is from the wayback machine I suspect as second age for some reason has begun to purge information from their website. Our system was inspired by their system which was widely recognized as one of the more enjoyable automated tournament systems. Renaissance might not exist if not for their removal of all their events many years ago. Blaise's image does illustrate an issue we are trying to address. That system had a variety of options and one common complaint was that players suffered from burn-out due to the amount of events and the varying options from said events. Our hope was to implement a tournament system where there are minimal staff run tournaments with simple options (restricted/free for all). Then allowing players to use the system for any tournaments they wish to arrange on their own. This is also why we took the time to allow players to use magic armor/runic weapons even in a restricted match by having their damage normalized. This way everyone who shows can participate, even if they brought the wrong items. Comments about that system are welcome as the Renaissance system was clearly inspired by it. However as it has not been seen for 3+ years and our version was hand coded by the Renaissance staff I think we only need to give credit to Milt for the original design.
I think resource management is one of the coolest parts of UO fighting or dueling. You have weight and item constraints, so it's not like someone can carry an infinite number of items. So there becomes a challenge in figuring out how best to use your 350 stones and 125 items, just like the constraint of 700 skill points and 225 attributes. Glancing through some of the pvp threads in this forum, it seems like there is some distaste for people recalling away when they're low on a particular potion or reagent. Ensuring actual use of items would prevent that from being an issue. On a slightly related note, I think Free Use also contributes heavily to a tournament-going population that is not at all active or invested in shard health, and expects things to be handed to them on a silver platter. But this is just an observation. I'm also not sure why some of the spells listed in the OP are banned. Mostly the area-of-effect spells and the field spells. Frankly I think Summon Creature should be legal too, given the casting time and weak result. But I could see the need to draw the line at 0 follower slots.
Most likely the free use option will only be used for testing as Dalavar is correct. A great deal of strategy in a tournament is preparation. However while we implement the system and refine it to an enjoyable automated experience we want to encourage players to come try it out. Ill update my initial post to reflect this. As for the spells this was just an arbitrary list I created in 5 minutes. I would rather the community establish a list of approved spells that create a balanced tournament experience.