Andy, I agree with you, particularly, in theory, but there too many incentives and workarounds. Any good wrestler whether kid, coach, or parent has two things in abundance: competitiveness and wherewithal.
What is the disincentive for a wrestler (or coach/parent) who is able to successfully cut that kind of weight even though they shouldn't? What if they can make State versus struggle to place at Semi-State in higher weight? They all know who their competitors are, what they weigh, and what they are up against. And, if they don't there is always someone or even this site or Track to inform them.
We all know tons of great kids that are cutting way too much weight. Don't we? And, I suspect we also know they are more successful at that lighter weight. They get recognitive from everywhere including the forums and the rankings. Yep, they'd be successful at a higher weight, maybe even two, but probably not 'as' successful.
That's a hard ask of any kid, coach, or parent. I'm, absolutely, not saying it's the right thing, but I understand the motivation and the difficulty of the problem.