I tend to disagree with this.
As is, districting often does some really stupid **** when compared with conference alignments. Often a conference will have teams in 3 or 4 different sectionals or districts, even if they are all (or mostly in) the same class. What better way to seed a district properly than have mostly same-district opponents on the schedule. Do home and aways and supplement with other area teams near district lines). Once teams get to districts/sectionals, they can be seeded based on like schedules which actually improves the fairness of the entire ordeal.
The one sport that probably needs and has always needed the most work is wrestling, especially at the individual level. The smaller classes have the most kids yet their are often sectionals/districts that are insanely easy/tough based on the weights and the year. Case in point, one of my classmates had the 2nd and 3rd ranked kids in his district his sophomore year, and the 1st and 2nd ranked kids his junior year. The sophomore year he lost to both, by 1 point, while his junior year those kids went on to place 1st and 2nd at state. There really should be some at large births reserved and distributed based on year results, and toughness of districts.