USAWrestling does not use last year's team placement to seed the National Duals for Schoolboys, Cadets, or Juniors. They use a point system where the past accomplishments of each individual on the current team are totalled, and seeds are based on that.
Accomplishments used include national champ, all-american, triple crown, regional champ, regional placewinner.
From what I have heard, Ohio's dual state tournament is organized this way, only they use previous high school placements to determine which teams are "invited" to team state. Our system may not be perfect, but it's better than Ohio's.
Sure the runner-up may not be the second best team in the state, but you have to admit that they deserve to be recognized for what they had to go through to get to that point. Give them the runner-up trophy and rings!