I like current set up - it gives more interesting series in the first round. You need to beat at least 3 good teams to win a cup, sometimes the cards fall that you need to beat 4.
Once at 32 teams, I'd go fully divisional, with 4v5 play-in games on the Monday and Tuesday that are currently dead days after the reg season ends. Kicks the playoffs off with four national, do-or-die games, and keeps more teams in the playoff hunt for longer. It also gives the division winners an extra bonus as they get to play a team with little rest.
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