Actually, last month I officially made a proposal to FIDE to change the format of the Women’s World Championship. I suggested three reasonable alternatives but the answer I received seems to indicate that my proposal was not accepted. The main reason why they want to stick to the current system is the fact that it is easier to find sponsors if you call the knock-out tournament “World Championship”. If you called it "World Cup" it would be extremely difficult to find sponsors.--Women's World Champion Hou Yifan
Knockout tournaments should not, in this writer's opinion, be used for determining world chess championships. Match play is the long standing tradition in chess for determining who is worthy of the title World Champion. Knockouts were tried by FIDE for the men's championship some years ago---anyone remember those "champions?"
http://en.chessbase.com/post/interview-with-hou-yifan
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