IMO.
If you have kid in novice who places 1st. in more than 3 tournaments, then he or she should go open, for the remainder of the year. A true novice should be a 1st. or 2nd year wrestler who doesn't place at any other tournament BUT novice! If your wrestler starts placing in open brackets then they should be in open tournaments.

Where Ks. has the biggest problem is too many brackets per age and weight group for an open division. Keep it simple 2 brackets, "A" "B" "C" in one and "D" in the other. You have to start some where.

How many kids try for state who are 1st or 2nd year wrestlers?

Not many unless you weigh 40, 43 ,46, 49, or similar due to not many 8u weigh these weights. Novice is too hard to judge, some should be, and others are in it for the hardware. If you place every week at novice then IMO you need to move into the open division, take your lumps and move on, it will only make you better.