This is a subject very near and dear to my heart. There are some complicating matters, such as the open enrollment all-star situation that has surfaced in the Twin Cities. That is a definite issue for the prospect of reducing classes. I agree.
However, after attending last year's state tournament and coming away with the feeling like my son and I had raised the attendance by one third, it is clear to me the recent rush to multiple classes is a bad choice. I agree it is very difficult for a current 1A school to compete with an all star Hopkins squad. However, after what I have seen in the form of the dramatic decline in the interest in the state tournament... the attempt to give more schools a chance, really just waters down the experience. What if a tournament was held in the woods? Would it make a sound?
Not counting the prickly issue of metro all star teams... there are other circumstances that make Basketball a unique sport where special, once in a lifetime small schools can compete with schools with much larger enrollment. Some of the reasons for this are quite simple:
1. There are many more small schools. Just the law of averages means that in any given year, a once-in-a-generation school can compete with top big schools.
2. There is a participation issue that rides under the surface of enrollment. I played for a tiny school where the second best player on the team, and honorable mention all conference performer as a senior would have easily washed out of a big program by the time he had hit 7th grade. He totally blossomed both in height and skill after his Sophomore year. Small schools tend to not lose players like this. Meanwhile, big schools often get phenoms that naturally stick with the sport despite a growth or development curve that ends early. They outlast the late bloomers, and are left with less competition later.
3. More sport offerings have a way of reducing the student-per-basketball player ratio at big schools. Many smaller schools offer basketball as the only winter sport and it is a big deal in these small communities. Meanwhile, with a bazillion choices and increased specialization to only one sport, many big schools get their basketball participation thinned by the time the kids reach upper elementary, further reducing the chance for late bloomers to emerge. This is true in the much larger district I live in now, with my children (which by comparing schedules, would likely have gone 2-6 against my old tiny alma mater over the last 8 years).
These issues and others tend to level the situation. Big schools still win more, but not always. This is what generates interest in a state tournament. Nobody is suggesting small schools can win 50/50. It is the fact that some CAN win on occasion deep into a tournament that creates interest in a state tournament.
This brings me to my last point: I grew up in the era of two classes, when everyone older than me was lamenting how it was much better with one. I played for a tiny school and we were pretty decent. We advanced to the big stage of a local college arena where we eventually lost in the District (now section) semi finals. The District had 14 teams and fed to a region where there were three other districts. We played in front of 3K fans and a raucous atmosphere in the district semi finals. It was the time of my life. I will never forget it. Our District champion (we lost to them by 2 during the year) caught fire but eventually lost to the eventual state class A champion in the region finals (one of the best HS games I have ever seen, with two teams that would now be in different classes). There were Star-Tribune articles, packed houses, people sitting in the aisles, etc. and nobody had even made it to state yet. I compare that to today where there are four classes, nobody goes to the games, and even the 4A third place game is played at Concordia. I used to even follow the consolation brackets in the old tournament. Now teams are forgotten unless they reach the championship game. Who is being served? Just how many kids are getting a better experience? You have to advance to the championship game now just to get the exposure that schools used to get by making it to the state tournament.