Here is what I would do
I would go back to 32 teams in the playoffs
9 districts of 6 teams in 3A, 2A, 1A
7 districts of 6 teams in 4A
6 or 7 team district in A and 8 man
District Champions get an automatic bid and a home game in the first round.
The remainder of the field is determined by some sort of points or computer system where all games including non-district are included. So that teams who play a tough schedule aren't penalized for doing so. I look at some of the districts the last couple of years and there were some that had 5 teams that were deserving of a bid in the 32 team system and some only had 1 or 2. So a system that includes playing up or down classes for non district games and what the record of the opponent is. BC Moore would be a good start, but there some things that BC Moore doesn't always get right.
For the playoffs I would announce the top 8 teams and make a bracket where 2 of those teams are in each quadrant of the bracket and try to make it where there was a 1-4 matched up with a 5-8 although some times that would be difficult with geography. Then fill out the rest of the bracket based upon both geography and ranking.
If you used the BC Moore Rankings the top 32 would be like this for 3A
1. Solon
2. DCG
3. WSR
4. SBL
5. Pella
6. Assumption
7. Harlan
8. Carlisle
9. Glenwood
10.Xavier
11.West Delaware
12.Heelan
13.Decorah
14.Storm Lake
15.Webster City
16.Norwalk
17.Spirit Lake
18.Wahlert
19.Marion
20.Winterset
21.Ballard
22.Spencer
23.Boone
24.Osky
25.Washington
26.Carroll
27.Atlantic
28.Mount Pleasant
29.Benton
30.Bondurant Farrar
31.Denison
32.Algona
I would tweak a few of these because for example Knoxville and Nevada both finished ahead of Bondurant Farrar so that is why I would only release the top 8 so you could make a few changes as you see fit. May you have a committee that selects the teams like the CFP and something like BC Moore is only part of it.
So then your bracket could be something like
Solon vs. Mt Pleasant
Decorah vs. Marion
Assumption vs. Washington
Xavier vs. Wahlert
WSR vs. Algona
West Delaware vs. Benton
Pella vs. Osky
Norwalk vs. Boone
DCG vs. Ballard
Storm Lake vs. Spencer
Carlisle vs. Winterset
Webster City vs. Bondurant Farrar
SBL vs. Denison
Heelan vs. Spirit Lake
Harlan vs. Atlantic
Glenwood vs. Carroll
Again this is just hypothetical, along with that I would look at maybe moving the state finals to the Tuesday and Wednesday before Thanksgiving, and basically having 6 days between each round.
The proposal the IFCA put forth to the IHSAA this year has the State Finals being the Monday and Tuesday before Thanksgiving and 6 days between games.