It wouldn't be a free pass if it was a 5 game 1st round series. Upsets happen in 5 games.
Rivalries make bad teams play above their means, this can only happen if the same teams play each other year after year.
For example, lets say the 7 game 1st round had not been implemented. While the rest is speculation, without a doubt the 1 series it would have changed was the Orlando-Detroit series in 2002... T-Mac would have already made it past the 1st round, and the Pistons may have never won anything. They may have even been relegated to mediocrity the next season.
That would have hurt my team, but I am still for 5 game first rounds.