As a Canadian, I absolutely appreciate the underdogs in the tournament. I'd even make the tournament larger. Reason is, we know that the usual suspects are going to make it to the finals anyways. And the fact that the best countries are handicapped by NHL playoffs, it would be a disservice to the countries who pour their resources into these tournaments to promote hockey locally to refuse them entry into the top tier of hockey. While Canada or Russia or the US might win this tournament, I think that the biggest relative ROI from this will be the underdogs who might not medal, but will play better than expected. I feel as though last game Canada v. France showed that. Betting that French fans were way more excited to contend with the world's best hockey nation than Canadians were about the fact that they won a game.
I understand from the POV of top tier country's fans that having Canada (or other similar countries) blow out Latvia, France, Austria, Slovenia, Denmark by several goals each year seems like a tedious affair, but it's not for Canadian fans that this is done. It's for the countries who need the exposure.
For that matter, has any team been promoted two divisions up? I can't find any information on promotion and relegation history.