I would personally rather see a 5-person round robin. You would take the state champions from each class along with 1 at large wrestler. This at large wrestler could be selected by a board of coaches from each class. There would obviously be a handful of wrestlers that couldn't/wouldn't attend. Their slot would be handed down to the runner-up to that respective champion. Each wrestler would get 4 matches with the winner being decided by the best record. You're bound to have tied records with this format, so you have predetermined tie-breakers, ie...head to head record, most pins, least amount of points against, etc.
This format would alleviate the "I wish these two wrestlers would've wrestled each other" problem. I think it would still draw many college recruiters as well as a good fan base. If you know for a fact that wrestler A is going to go at it with wrestler B, you're gonna go. Just my 3 cents worth.....