My understanding is that the purpose of student-athletics is to teach life skills such as work ethic, discipline, teamwork, sportsmanship and goal setting... The main goal wasn't to determine the best wrestler in the state (although it's a great byproduct). The development of well rounded individuals was the goal. Key to that would be participation. I wrestled for a large school and my sons for a smaller school, there is no comparison. Workout partners, facilities and even numbers help with fund raising. I once read something to the effect of "One of the biggest obstacles facing wrestling and it's growth is staring back at us in the mirror". Unfortunately, I tend to agree.
I still hear about a local 1A school that won state years ago in basketball, doesn't seem to bother them. Basketball was already losing attendance before it was classed. If you talk to most smaller schools, they aren't disappointed years later.