Actually, I don't think that is entirely true. According to the SCHSL website the #5 seeds from the Spartanburg area district (Maulding, Dorman, etc) and the Columbia district (Dutch Fork, spring valley, etc) get in with the 3 and 4 seed from the columbia region moving to the lower state.
However, this still doesn't create competitive balance. Switching to the boys side, the upperstate will have Mauldin, Wren, Mann, Riverside, Irmo, Spring Valley, Northwestern, Dorman, etc. you have the 3a and 4a state champion along with Irmo. how is that balance??? Why not let every school in and add a round? And/or have a voting meeting to seed everyone and then have the coaches place themselves on the board? Or have neutral sites for the upperstate/lowerstate semis and finals to alleviate travel issues? have a big tournament sheet and go down the seedings and the coach can place themselves. Some of the best schools may want to play in the first round. Some coaches may choose to travel close or go far to play someone they think they can beat.
heck in football you could have dorman play at summerville in the second round. Why not have that option in soocer?