I agree with Meditz, it is hard to see what you have to gain until you said...
Being that there are as you put it only 7 kids in this group then it will reduce it by even one more.
It looks like you are trying to make sure your kid is a state placer by just showing up. Rules and procedures were followed. There is no great conspiracy theory, especially against a 10 year old kid. I would think that you would want more kids in the weight, that would give the weight class more credibility. Go wrestle and hope for the best.