I have a solution, so please hear me out.
To have a "World Cup" in Arma, it's important that teams are decided by country, and only one country per team. This is the attraction of the tournament.
However, some countries have too many players, and some have too few.
I think excess players should be allowed to play for teams who are short of players. Think of those players as having "dual-citizenship" (which some players in the World Cup have).
If someone creates a team for Andorra, and only has 3 players, why not fill in with the extra US players? There are plenty of tronners who would love to play and will do well representing other countries. If you have Team Germany with 5 Germans and 1 UK player, I don't think that's bad. If you have Team Swiss with 1 Swiss and 5 from the USA, I think that's OK too --- If the team name remains Swiss. That's the important thing.
Now, I don't have a solution to the problem of too many players for one country. I say let the team managers decide. In the case of the USA, it's only Spook who wants to be team manager, so leave the decision to him. If you have more than one team manager, then work it out through PM's or something.
Don't make a big deal out of something fun. I think it's more important to see a bracket with countries on it than worry too much about player citizenship. (Also, what about players in the US who aren't actual citizens, but were born in the EU? What then!? haha!)
If you have too many player per country, there is also the voting method used for the
US vs EU Fortress Tournament a few months ago.