Absolutely ridiculous format but I guess some of it is there are just so few rugby playing nations you are bound to end up with an uneven draw. They have got to find some way of seeding it closer to the actual tournament or figuring out a way that you don't have 3 of the top 5 teams in the world in a group though. Both quarter finals in that half of the draw will be far more competitive games than any up until the final (which is very likely to be whichever two teams manage to come out of those quarters).
I disagree wholeheartedly that Scotland are crap btw, they looked crap for 60 minutes because they ran into a buzzsaw Irish team but they would beat England and Wales quite handily who will go unbeaten in their groups.