Looking at last year the strength of schedule was 22nd and they struggled against top tier (4A) teams. I would guess the not enough challenge for the starters will end with the move to 4A.

AS for the point on having premier players I somewhat agree but I also think that some times the number of club players over all is just as important as having a few premier players. Some kids never play premier, not available or various other reasons so they play challenge or even classic. I have seen premier teams challeged (and beaten) by challenge teams.
In fact I believe the Discoveries club boys team that won the national championship was only a "challenge" team and the core of that team is NWHS state champ team thus few "premier" players yet still tops in state.