My Idea
Two groups, one in NA and one in EU like 2004. The best 3 finishers in their respective groups move onto playoffs, while the group winners have semi-final byes.
Either host the tournament in mid-late September or like someone said up above, replace the All-Star game every 4 years with the tournament (personally I'd prefer to host it in September even though that has it's problems too).
A great idea would be to host selection camps and use the tournament exhibition games to determine the final cuts and whatnot. I feel that selection camps would further motivate the players into making their respective nations teams and elevate play in the tournament.
+Host a qualifying tournament for the two fill in nations.
NA Pool:
Canada
Russia
United States
Qualifier #1 (Switzerland)
EU Pool:
Czech Republic
Finland
Sweden
Qualifier #2 (Germany)
Schedule:
NA Pool Games-
SUI v USA - Videotron Centre, Quebec City, QUE, CAN
RUS v CAN - Rogers Arena, Edmonton, AB, CAN
SUI v CAN - Bell Centre, Montreal, QUE, CAN
USA v RUS - PPG Paints Arena, Pittsburgh, PA, USA
SUI v RUS - Videotron Centre, Quebec City, QUE, CAN
CAN v USA - Xcel Energy Center, Saint Paul, MN, USA
EU Pool Games-
SWE v CZE - O2 Arena, Prague, CZE
GER v FIN - Hartwall Arena, Helsinki, FIN
CZE v GER - Lanxess Arena, Cologne, GER
FIN v SWE - Ericsson Globe, Stockholm, SWE
GER v SWE - Malmo Arena, Malmo, SWE
FIN v CZE - Hartwall Arena, Helsinki, FIN
Group Standings-
NA Group:
1NA (Semifinal bye)
2NA (Quarterfinal)
3NA (Quarterfinal)
4NA (Eliminated)
EU Group:
1EU (Semifinal bye)
2EU (Quarterfinal)
3EU (Quarterfinal)
4EU (Eliminated)
Quarterfinal:
EU2 v NA3 - Winner plays NA1
EU3 v NA2 - Winner plays EU1
Semi final:
NA1 v winner of EU2 v NA3
EU1 v winner of EU3 v NA2
WCoH Final - Best of 3 series:
Semifinal winner #1 v Semifinal winner #2
Pretty straight forward from here.