Yes, every team in region makes tourney. This system started last season. District regular season and tournament championships are pretty much for bragging rights now, since seeding is determined by power points just like in football.
Following the conclusion of regular season and district tournaments by the middle of next week, the top two rated teams in the South will receive the #1 and #3 seeds, while the top two in the North get #2 and #4. Those four teams all receive byes into the regional quarterfinals, which will be on 2/20.
Seeds 5 through 13 will be set based solely on their power point ratings, regardless of whether they’re in the North or South divisions. The 12 and 13 seeds will play on 2/15 in a play-in game. Then on 2/18 in the first round, the winner of that game will play 5, 11 will play 6, 10 will play 7 and 9 will play 8.