so it's not just some masochist then that was grinding out on that first repeatable mission to push our brackets all to 300 pts per quest
Nope. The ramp up like you saw was intentional. The "and now everything is 300 unless you're at #1, then it's 5", not so much.
Do you plan to fix it mid-tournament? Or this Heroic will be left as it is and next one will be fixed?
If there's any way to just fix the point drop off for being in first, that would make things a lot less annoying.