I'll be honest, I've always hated this arc, even the first time I read the manga.
There is no way, in any form of organized basketball, even street ball, where the Ice Pick team would be allowed to continue with the clear flagrant fouls they're committing, especially when there are referees and an a form of organization involved. It'd be like going to a baseball tournament and having a batter beat the catcher with a bat without any sort of repercussion, which makes me think the writer has no idea how street ball actually works.
Sure, the game is a bit rougher, but as long as there are referees, flagrants like that would get them banned from the competition by the sponsors, if nothing else, because a tournament with that many injuries caused intentionally is actually really bad for a tournament's reputation.
Why do you think Avon Barksdale didn't have one of his guys try to cripple the ringer Proposition Joe brought in during the tournament in The Wire? Barksdale is almost certainly way more of a gangster than Ice Pick is.