This was a possible solution I threw out last year. I thought about it, and I still think it holds some credibility.

"I am sure that this has been thrown out there before, but one solution might be to scrap all the Sub-Districts, have four true District tournaments, take the best eight from each and wrestle two Sub-States (D1 vs D3, D2 vs D4, or whatever combination), then take the top eight from each Sub-State to wrestle the sixteen man bracket at State."

So, instead of 8 to 4 to 1, you go 4 to 2 to 1. You still get three tournaments out of it for revenue (move Districts and Sub-States around each year).