2 and 3 are on the same side of the bracket at state anyway and if 3 is better he will win in the semis. Years ago D1 did it that way (at subs or district, can't remember which) but I don't think it made alot of difference so they quit. If someone had a bad match in the semis at district they have a chance to make up for it the next weekend. Good luck to everyone this weekend!
State brackets are not seeded so 2 and 3 are not always on the same side of the bracket. You could have your best 2 wrestlers on the same side of the bracket it is just luck of the draw.