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The only problem I can see with it is that it makes the playoffs even more random than they already are. Baseball is unique in that the best team rarely wins (even the best playoff-built team) and this would just increase that.
Theres also less incentive to create a dominant team.. you'd just need 88 wins or whatever and hope you get lucky. It increases the chances for entering the playoffs, but also decreases the chances of going all the way (just due to so many rounds increasing randomness).
That said, if MLB created a "bye system" I'd be in favor of expanding. Reward the top regular season finishers with 1st round byes and it starts making sense. It would be hard to fit in the schedule, so perhaps the wild cards duke it out in 3-game series.