Yes, you are right. The non-refundable entry fees was for tournaments with a limited amount of spots. For tournaments with unlimited spots the entry fees should be refundable and I will work on that change asap.
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The amount of spots available for players shouldn't matter for a refund stance. A refund should be given only when a player decides to un-register before the start of a tourney. If a person decides to hit that register button and pay a fee and then misses the tournament then they lose the fee. This is standard practice in any like minded tournaments that I have been apart of.
I'd like to see entry fees only refunded if a player leaves before check-in opens. Otherwise, people will spam themselves into everything without checking if they're going to be available.