I like your idea.
I also agree that the All-State team should not be selected until after all of the All-Region teams have been named.
The All-Region players should be the pool from which the All-State team is named. No need to worry about whether all the worthy candidates have been nominated. If you are All-Region, you are then considered for All-State.
If your coach doesn't not nominate you for All-Region (for whatever reason), then you can't make All-State.
