At the end of the day though to be a state champion you have to beat everyone in the bracket. I think separating and trying to seed would hurt the small programs that don't have a great budget and have to stick to low tier tournaments. You may have a stud kid that wins a tough regional, but gets the shaft due to "strength of schedule" Teams that are in a title hunt and see they have a "bad draw" may throw tantrums and try to dodge and duck guys they know are superior. Leave it as is... I think one of the NCAA divisions does the same way.