There is already a system like you described. It is called club soccer. You have Premier League, Challenge League, Classic 1&2 and Rec. Scholastic sports are just different.
Blowouts happen in every sport. There are football games every week that the winning team outscores their opponent by 40-60 points, basketball games where teams don't score more that 15-20 points and some don't even get into double digits. this why they have mercy rules in baseball and softball.
what could prevent some of the lopsided scoring is a proposal where once a team gets up by 5 or six, the referee reduces the time by half
i do agree with you that every game needs to have 3 referees.
