IMO there are three type of gyms: The top tier gyms that generally are extremely competitive, the second tier gyms that may be competitive but is more fun program where hitting a routine means more than the final placement, and the we just opened our doors and are glad to be here even if we have no clue type gym. There are I believe more gyms in tiers 2 and 3 than are in one. And all have money to spend and want to compete somewhere.
Personally I have long been a proponent of such a split, because whether we like to admit it or not there is a divide especially at the Level 5 division. There is simply no way some gyms can compete with gyms that can afford to scholarship the majority of their Worlds team athletes. The gyms that are able to give to their athletes free or greatly reduced in price uniforms, shoes, bows, etc because companies are willing to sponsor them also has a financial advantage over a gym that has the parents paying for everything. Not hating folks, just stating facts. :-) A gym that has numerous athletes that can step in on a moments notice or will relocate cross country just for a chance to be on their team has an advantage over a gym that if one person gets injured or quits there really is not a good replacement for that person in the gym.
Frankly I do not believe the "small gym" is crying foul about the competitive advantages some gyms have over them. It is what it is, like it or not. I have not seen a why is the small gym not attending worlds type survey. People may be taking anecdotal evidence (questions asked at competitions and informal conversations) and coming to that conclusion however. What I do feel is Varsity/USASF and EP's that offer Worlds Bids are losing $$$ off those gyms not chasing the dream of going to Worlds. Many smaller, lesser known, unlikely to be hyped or tweeted about type gyms know their Level 5 team won't stack up competitively against the top tier gyms because they are not built the same way, don't have the same demographic to build continually strong teams year after year or are not built for the same purpose/goal/vision of Worlds. Gyms that could potentially put level 5 teams together for fun are not, gyms that can't max out numbers of athletes or skills to be competitive with the top tier gyms are choosing to either go restricted or level 4 rather than push to Level 5 with a routine that will get slammed for not being Level 5 enough to compete with the top tier gyms out there. Gyms that would of in the past gladly accepted an At Large bid are not, choosing other end of year events if they don't get a Full Paid or Partial Paid bid. Now you add to the mix the numerous new end of year events (All Star Games, Epic, Revolution, Champions League, etc.) all with the possible ability to draw more programs away from the Varsity/USASF Worlds chase, if they are run well and have great results. IMO Varsity/USASF needs to find another way to get that positive vibe and $$$ flowing again. Which is a smart business move for them, even if it is cloaked in the "we are looking out for the small gym" feel good speak. There are more small gyms than Mega gyms so lets reach out to them.
My original thought was simply making the division split for the regular year, not at Worlds. Leave Worlds alone. Worlds would be for D1. D2 would have, now that it has been created, Summit. Rather than split by numbers a gym can choose by September to be D1 or D2 as it fits their program vision, goals, demographics and aspirations. A gym could move up from D2 in the year by written request, or lets say winning D2 Championships but once up to D1 could not move back down to D2. The D1 or D2 designation would affect all teams in the gym and would not allow a gym to be D1 for Worlds purposes only and D2 for every other level. A D1 gym could not compete Level 5 at D2 Championships - if it was Summit use the same crossover rules. EP's could still combine if there were not enough teams in each Division, but I feel like it would help gyms more to know that they are competing against a similar competitor and show them the top tier programs and give them goals to aspire to at the same event.
Sorry for the ramble.