While I have no problem with Store Championships capping players at 32 for their event (64 for regionals), as that is what FFG provides prize support for, is there anywhere that says that stores are allowed to cap players are less than that?
Otherwise, stores could limit to 4 players, or 8, or whatnot? I saw nothing in the standard tournament FAQ other than there needs to be at least 4 for it to be official.