I think you need to work on clarifying this idea. One giant paragraph, and a link to a page that shows me nothing at all (something there isn't working for me)...makes your point a bit confusing.
The knockout format is a good one (sort of a king of the hill where the loser sends in another player). We are doing one now with GG: https://sites.google.com/site/warlightwgclan/games/relite-challenge
If I understand you correctly (again, I saw nothing in your link but a blank page with headers and background), you are suggesting using these challenges to actually fight over a map over time. If I have that right, it is a cool idea. Just not sure how you would execute that. I don't think Fizzer would go through the lengths to make that kind of product, it would have to be done by a player on here.
There would be several issues you'd have to resolve though. How many/often can you do challenges? What happens if a clan is eliminated (no territories)? What formats would you do (1v1 strat would get old)? What happens when a clan retires? What happens when you have a new clan? What if a clan splits off?
It all sounds cool, but would be very tricky to do.
Edited 12/3/2013 20:11:44