I think it's mostly because TGS is the biggest tournament that your average Japanese hidden boss can make reliably without spending a huge amount of money going overseas, etc. Dashio for example was known by Japanese players before winning; many of them were telling the Americans to watch out for him - a true arcade hidden boss. Pepeday was a near-total unknown tho IIRC; just some guy who's happy to have a job and a home life and happened to be really good at Elf on the side. Still, the location is a huge boom for both of them, and they probably didn't have to get time off from their jobs either thanks to the timing.
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