Nothing stops players from doing this. It was organized by players before (not GMs) and players can take care of it again.
Your right! Sadly it seems the players aren't doing this because I haven't seen one thread with a good tournament set up in a long while, as a matter of fact since Proglin left the community. I have seen attempts and fails. I am not sure if it is lack or commitment from the community, to scared to try due to people picking things apart on the forums or lack of support or perhaps people don't feel they can fill the shoes of proglin? Whatever it is I am not seeing the players making this happen. (Sorry just being realistic :S and calling it like it is)
I was looking for something more
offical. The PlaneShift staff to back up a player who deserves this title (giving them an offical title) so that when they are logged into the world of PlaneShift people know this person was approved by the PlaneShift staff or Talad himself. This tournament holder would also have rules and guidelines (as the GM's do) and would be responsible for running at least one tournament per mounth. I think people would respect this person much more if they knew the PlaneShift staff had made room for this position. Besides players can't give out experience points and prizes. Only those with authority in PlaneShift can. The players are some what limited. We kind of need that part to make it a little more realistic and people would probably want to participate more. If it is just a regular player they may not have the best weapons to give as prizes and they might find it overwhelming to give the players something to lure them to come and play. Proglin even had some rough times and even wanted to quit at certain points because his hands were always tied. I am trying to wish that issue away.

I know it can be done.
Maybe because it was Zorbels wish I can nominate her to make this her event.
I don't have the time unfortantly (it takes alot of work and planning for these sorts of events if you want it done right), not only that but I was never good at that sort of thing. It just isn't my bag. I like to participate in it, not run it. Thanks for the vote of confidence though!