I'm not sure I like the idea of "punishing" a person who has worked hard to have 70 entries. I'd prefer to encourage an increase in the entry per region cap and getting more volunteers. Not to mention getting the info out there to possible competitors that this competition fills up extremely quick and registration ASAP is important if you want to paricipate.
Some things need to happen first before you up the number of entries per region. The main thing is you will need to train and certify a lot more judges. Even at the 750 cap, I would bet that among the many pairs of people judging beers across the US and Canada this year, neither person was a ranked BJCP judge. When I organize a competition I like to have at least a Certified or higher ranked judge in each pair of judges. This was hard for us to accomplish the last few years with competitions in the 400-500 entry range.
In my opinion, we should strive for quality not quantity for all competitions, but especially our national competition.