Errores del pasado: Conflicto OGN vs RIOT

That's a weird perversion of our goals.
I also really love you drawing up the Blizzard example just to attempt to strawman this. Odd parallel, especially considering that League has been under fairly heavy Riot supervision for its entire lifetime and has only grown year over year.
I also have literally no idea what you're trying to say regarding the Gragas or Renektion situations. Are you saying you think ReignOver should have kept playing with 4/5th of a champion?
Let's get back to the meat of it. It's not about taking the whole pie. It's about protecting the players and facilitating the growth of esports.
LPL and LCK this year. Let's see, we kept the same beloved English-speaking Korean casters in Monte and DoA, and put the entire stream up in HD on multiple platforms for free. Compared to last year, it was only on Twitch and anything above 480p was behind a paywall. Oh and the VoDs are free and available immediately, too. They weren't last year.
LPL got an actual production staff behind them, we streamed every single game (after the first few weeks. Our bad), in HD on multiple platforms and brought on a great number of the wonderful people already pushing for English-language LPL such as Froskurinn and Sata.
OK so Riot's involvement in the foreign leagues and brought easier viewing and greater exposure, while keeping everyone who was already involved still involved. Seems like a win so far.
Let's talk automated streams. The short of it is that for many players, a significant portion of their income is streaming revenue. This is revenue we want our players to receive. They're putting in a lot of the hard work, after all. Most of us don't speak Korean here but a lot of us like watching Faker play League of Legends. There's not that much preventing us from departing from his personal stream (that he can earn money off of) and heading to the stream run by somebody's bot for no effort. Doesn't seem fair to Faker does it? He's the one crushing KR Solo Queue. He deserves the views and the advertising or sponsorship money that comes along with it.
Let's talk third-party tournaments. Once again, we're protective of our professional players. They're signing up for full-time jobs and putting in thousands of hours every year into perfecting their craft. Their job is entertaining us, the viewers, the ones who love watching high-level games. Without them, there simply wouldn't be esports for us to enjoy.
I personally don't know the guidelines for third-party tournaments so I can't speak to those exactly. But I'm willing to bet we didn't say, "Hey Carmac, here's the exact teams and game formats. Run it or else." Keep in mind, there's a difference between, "We followed the guidelines" and "We were unable to do anything different, this was tournament-in-a-box." Flipping a coin and declaring a winner follows the guidelines of "There must be a clear winner." That doesn't mean it's a good tournament format. What I will say is that we want the suite of allowed tournament formats to be palatable for our players. How many games are they playing in a day? How many continents do these guys have to travel to in a given month? What are their conditions like? Hotels? Practice? Anyone from /r/globaloffensive can talk about some of the really terrible experiences we had in the last couple months with shady tournaments that up and disappeared when the players showed up or it was time for the prize money to get paid. We aren't going to allow that for our players who are dedicating their lives to this craft.
I've personally talked to pro players in other games. A lot of these guys are away from home for months at a time several times a year and wish they had something like the LCS instead of (for example) the seemingly weekly CS:GO tournaments. They get a few weeks, days, sometimes only hours back home and then they're out around the world again. We're talking adults here with lives outside of their chosen profession. Professional athletes in conventional sports are home much more than they're away. They're able to buy houses, get married, have children, actually have a real life outside the game. I'm not saying Doublelift needs to be a dad, but I can't imagine having a real relationship if I was out of the country more often than not because of my job. That's one of the parts of what the stability of the LCS hopes to bring.
Overall, it's a really interesting discussion to get into. As an end user and spectator of the system, you typically only see the results and effects of actions behind the scenes and often can only guess as to the cause. Of course, I get to sit here on the Riot side of things and get to have conversations with the people running the leagues and creating the rules. Seeing something like "regulated third-party tournaments" certainly could be full tin-foil-hat "some people thought IPL5 was better than Worlds, so Riot wants to shut it down." But it can just as easily be, "Getting to prepare for your opponents is a big deal and playing six best of 3s in a day, half of them off-stream, sucks."