I would say a kids from schools like Oak Hill, Adams Central, Knightstown, Centerville, Delphi, Triton, might put more time in to wrestling if they had a better chance to represent their school at the State tournament. Logic being they would spend more time with wrestling, get better, thus we would increase in talent. It's easier to convince a kid to stay out if he was a semi state qualifier than if he losing in the sectional.
As opposed to your suggested scenario that if we class kids don't have to work as hard to win, and thus our overall talent would decrease.