This has been often discussed.
Two things that I can add that should allay your fears.
1) Look at the current month earnings table. The top 30 places and more are dominated by Legends. In fact on my last review around 90 of the top 100 were Legends.
2) From what I can see on most CTTH competitions the best scores don't win the prizes. It is given to a random pick from all those that have entered. IMHO that renders CTTH worthless. If you want to practice approach shots - play Blitz. I finished something like 7th in a Bethpage CTTH once, zilch - not a cent. I use them to grab those 880 XP points if I haven't time to play a round.
There is no substitute for days and days of practice. Some of the Legends/TMs are great natural players of this game. Some from almost the first game. Others get there by doggesd practice.
I avoid the weekly and monthly unlimited tournos that contain sandbaggers - although most of those are tiered anyway. I haven't the time to compete against people who keep quitting until they are -3 after the first three holes. Good luck to them if that's how to get the prizes - but life is too short, and that's not enjoyable for me.
95% of hacks, amateurs, pros and tour pros may be able to buy the equipment, but shooting low scores with it is a different matter. The hack scoring as you said has probably been here under a different name to learn the courses - or he/she hit 9 good approaches after a good spell of practice.