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Just get rid of 1k hats altogether, you will see how many guilds remain because they "like towering and want to be the best towering guild."
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And that makes sense how? Just because you dislike towering doesn't mean you should ruin the activity for the players who enjoy it.
Adding a reward to something can incentivize people to do it more
Removing a reward will make players hate the activity and not do it anymore.
Personally, I think players should be limited on how many 1k hats they can get per year. 1 or 2, so that they'll either not tower or go farther into a guild. So the players who like to tower can still tower without feeling like they are wasting their time. That
still removes the reward though, in a way.