Rich,
Trust me, there are plenty of lower level professional events that a young player plays in an attempt to build confidence and earn a living. It is not a requirement that you be a professional to play in them however. Placing some young pro, in need of confidence, in that field will not elevate the status of the event at all, and if winning that tournament is easy for him then winning his state open would be just as easy, go play in that.
To me, the great thing about our amateur status rules is the personal understanding and accountability it might develop in those good young players and (more importantly) lovers of the game. There are rewards and consequences to every action, and while I think I had a grasp on them prior to turning I understand them much better today.
I think a distinction between the two worlds need be maintained, and even strengthened if possible, because of that accountability.