To me, there are differnet levels of Tournaments:
Fun/Charity Stuff - Mostly scrambles. Anyone can enter with an entry fee, and typically you see a lot of drinking, carousing, gambling, and other funky stuff. Quite nonsense, IMO.
Organized Events - Similar to Hackerstour.com, etc. These are a little more serious, but they are typically a mix of local people who want to get together, have fun, and enjoy a tournament situation, but IMO, these are one step above the fun/charity events.
College/HS Events - Very serious competitive events for good players on their high school or college team. Match or stroke play. Bring some game........there are some GREAT younger players out there these days.
Local/Regional USGA events - The USGA golf site lists many regional events for both seniors, open, and junior divisions. While these are generally open to anyone with a valid USGA handicap, you can see some pretty good players at these events.
http://www.usga.org/championships/am.../directory.asp
Professional Mini-Tours - Hooters, Tight Lies, and other tours. Bring some game! You need to qualify, and pony up some good entry fee money for these events. I wouldn't think about this until your game is REALLY good (handicap less than 2-3 or so) to be able to compete.
Q School, PGA Tour, European Tour, etc. - Bingo! The top eschelon of golfing. If you get there, enjoy it!
As far as your question about Driving distanc e- it's IRRELEVANT, but distance always helps. There are guys on the PGA Tour who only drive it 270 yards, but they're still competitive. Don't worry about this, but it always helps to be long (but it helps MORE to be accurate).