With class wrestling one thing that never comes up is the "balkanization" that would happen to the wrestling community. I don't like the idea of segregating teams and having to pay attention to who is in what class, etc. As for 8 teams getting more "media exposure" - is it earned? This media exposure comes AT THE EXPENSE of the top eight who have earned it. Put differently, the top 8 at Team State have EARNED the undivided attention of ALL wrestling fans in the State of Indiana, and all real fans of wrestling would be at ONE SITE on that weekend at Center Grove. Yes, I'm saying that all those "fans" who stay home because they don't have a kid/team competing aren't real fans - they're "homers."
The segregating of schools by class would create a new issue for small school State. Every year the final would be MD vs. whoever. How boring would that be? Mater Dei may be down the last couple of years but they would still score 60+ in a dual against any small school team in the state, at least for awhile. Depending on the cutoff, only a Yorktown could compete with MD. However, Yorktown is a real team with a great tradition. This weekend they get to go after Castle and Mishawaka. Would they want it any other way? So, if Yorktown is small enough to meet the cutoff they wrestle MD every year, year in and year out for a meaningless small school state title. If they're above the cutoff they have the opportunity to take on real competition while no one will care what MD does - not even their fans. I imagine that in that event MD will continue to decline and they will never be back.
A divided team state series would just create new dominant team scenarios. In the Southland (without MD) it would be Castle and Evansville Reitz for the team regional every year.