The word panna is actually from Suriname.
But I agree with your sentiments. If you want to do sanctioned events, do events with the same format. It's indeed kinda like saying that back in the days Michael Jordan could use the points he scored shooting hoops in his backyard to improve the Bull's standings.
There are plenty of 5 man events of good decent to good quality, that don't need the "official stamp" from the MS to justify themselves, they do fine as is.
Also, many of these events have a local nature, and some countries have better local series/events, and these would run the biggest chance of getting that sanctioned event status. Simply put, if you live in a country that has an established, good quality 5 man series or event, you get extra benefits compared to people that live in less fortunate places.
People might say that nobody is stopping these teams from traveling to these events if they are not in their own countries, but I think most teams would prefer to spend that kind of cash and resources on true MS events.
But the main argument against it is, as you said, it's not even the same format! It's just silly...