There's nothing wrong with closing the event to the general public for whatever reason (space, security, etc) - it's the fact that they waited until only A WEEK before to tell everyone! You have an event that's been open to the public since its beginning, and then just a week before you announce that no one but invitees can get in? That's what's not okay here. They knew the venue was small and there were a lot of invitees this year, so this is something they should have announced at least a few months ago. If I decide to call off my trip I'll be out my airfare/shuttle expenses, which is really frustrating (though not as bad as people coming from other states and overseas).
Some people are saying you can register for the Pokken LCQ to get a badge, but I'm still trying to find out if that badge will also let you participate in side events (basically, are all badges the same or is there one for Pokken, one for side events, etc?) Things are so disorganized now, even if they say the badges are the same there's still a chance they could tell me otherwise when I finally get there...