One thing to point out is that many of the states that you mention have a very LARGE percentage of kids that are held back, possibly to circumvent this rule? There are kids that are a year older than my son, that are a grade BEHIND him in school.
I am waiting for feedback from my club before I say for sure how I'll vote, but I agree with it in the long run will push kids to be better wrestlers. I think it will be passed easily if you give the option of letting a freshman wrestle 14u, OR the HS division. I think it would police itself, because if I see a freshman that should be in the HS division, sandbaggin and wrestling 14u, I'll call him out. Someone mentioned Reece Conklin, if this rule were in place when he were a freshman, and he chose to wrestle 14u, lots of people would have raised a stink. Reece would not have done that, just using him as an example.