I grew up in Indiana and until some time ago big schools and small schools competed with one another. Now they have different "Classes" Big, Medium and small...everything needs to be "fair" for the lil' dumplins
I want it back the way it was, but I doubt I will see that in my lifetime.
I may be slightly biased, but I think Kentucky has the best system. The "major" tournament (The Sweet Sixteen) has no classes. Everyone plays for the title.
However, in January there is the Class "A" tournament which is for high schools with less than 400 students. As a graduate and former player at a high school that qualified under this, my teammates and I really appreciated that tournament. We went to the state Class "A" tournament 3 times when I was in high school. It was a special experience, even though we knew that it couldn't begin to compare with the real tournament.
It was sort of like the "Bracket Buster" games that ESPN has started having in mid-late season for the mid-major college teams. It gives the small schools a chance to showcase their talent as well.