The title is "Canadian National Champion"...it's hard to claim that title if you're not Canadian. It's not as though it's a new concept, many USPSA Area matches have an "Area Champion" trophy, which doesn't go to out of Area residents. I'm sure Jessie, KC and Chris have all been in this situation and are quite happy with "High Overall". I wasn't there, so I don't know who the sponsors are, but generally aren't those top people generally showing up as part of a sponsor package?
As for the Canadian Runner up winning the title, but not the match winner trophy...The jewelry just says "National Champion" whether you were 1st, 2nd or 3rd. When you look at that ring/pendant, those words are all that count. The trophy is just another hunk of wood/metal/crystal stuffed into a back room.
World Shoot makes exceptions for their "Patrons". I'll be honest, I haven't looked up the rulebook to see how those are written up with regard to prematch/main match, but the precedent for a pay more and get preferential treatment does exist. IIRC, patrons get a single slot for the main match, or 2 slots for the prematch.
Another way to look at things....paying the higher match fee could also constitute a level of sponsorship and earn a spot in the prematch. It should probably be written up as such in the match application though.