Having worked for a smaller EP I can tell you that many times prospective customers told us they would NOT attend certain events UNLESS it was a Nationals. They wanted to give that opportunity to their athletes to at least be competitive - not necessarily win an event. Many times these were programs that many of us would not even know existed, yet are very solid as a gym although largely not known in the land of Fiercebordia. :D So in some ways it is a case of some EP's catering to what their prospective customers are asking.
Now here is my mish mash of assorted ideas to throw away. Still thinking thru it to make it more cohesive.
1.) USASF becomes totally separate and self sustaining from Varsity. I don't want to feel like that in order to support one, (USASF) I have no choice but to support the other. (Varsity)
2.) USASF creates 2 competitive tiers - Division 1 and Division 2. This gets rid of the small gym division and lets gyms enter a division based on their own competitive ability. I don't believe this will lessen competition since this is already happening anyhow. Gyms know they won't have a chance against certain programs, they find another event. It may not be popular but it happens.
3.) Gym must officially register their competitive division for the year by certified mail by September 30th. Now it is tracked as to when it was sent, by whom and who signed for it - regardless if it is the system or not! No USASF sanctioned competitions can be held before that time. (Safety) A gym can not split teams in one or the other. This prevents gyms from abusing the crossover rule - since we won't fix it - to dominate both divisions, which IMO is at the heart of the small gym issue. If it is a gym with multiple locations they must pick one division for the entire program. (This will not be popular but gets rid of the crossovers from one location, stocking a weaker location's team at prominent events, or a gym loading their Level 5's onto a level 2 team just to win a jacket)
4.) If a gym wants to change Divisions they can do it by Jan 1, but it will cost them $1000.00 to do so. Once again it is the entire program, not just one team.
5.) EP's can have their own Nationals, but only one in order to be USASF sanctioned. Call them what you want, give away what you want, but only one National Championship per year, per EP.
6.) EP applies to be a Div 1 or Div 2 vendor based on their market and client base. You may exhibition only at a different Div event but not compete for awards, trophies, bids, whatever. Based on event history an EP may petition USASF to run both divisions at that event. This would cover events that have had major small gym attendance in the past.
7.) EP can create their own competition structure about how they will adapt to Div 1 and Div 2. This way they can adapt to their market and their customers in a way that they don't lose business.
8.) World's bid events and Worlds's are Division 1.
9.) Summit is Division 1 and US Finals is Division 2. This would allow the newer, building up level 5 programs to actually have a strong, attainable, desirable end of year goal rather than Worlds or bust mentality which is the common indu$try push. This by itself would lesson the # of At Large bids at Worlds - which IMO is one reason why Varsity/USASF has fought against it. Less money for them of teams chasing a dream.