A winner-take-all tourney in conventional format would be punitive if large numbers entered. That's sort of WHY RR formats were created, to satisfy those who like winner-take-all. This Super Robin is an extension of that, for more players, and (I think) came about because of the special needs of Hearts, although it can be applied elsewhere.
Personally I like the no-winner-when-tied aspect of it. Reason: when 3 players have tied at 2-1 in a RR, if none of them wins 2 matches (all go 1-1 in second round) then everyone takes his entry fee back precisely, it seems kind of elegant to me. Like I lose first match in Rd 2 but I am still the SPOILER, I have something to fight for.