The SCHSL is not alone among state associations in feeding the fallacy that enrollment size is the No. 1 predictor of outcome and, therefore, the only way to set up leagues and state competitions.
The reality is, private/parochial schools do not play by the same rules as the public counterparts. They have virtually unlimited enrollment areas AND the capacity to recruit student-athletes. Not all do. But some do. Mix that with better "resources," and then, as they like to say in the U.K., the cat's amongst the pigeons.
Allow me to add that this is NOT a uniquely private school phenomenon. For years, Summerville High School aggressively recruited kids for football, then ruthlessly redshirted many in the name of winning football games. The results were stunning until others started doing the same sort of things. Exhibit A: Goose Creek football.
All of this having been said, there is at least some truth to the sentiment that it's up to each school to field and support competitive teams. Not sure that necessarily implies the course of discontinuing "non-competitive" programs. Obviously, B-H was "competitive" with many of its peers, as it DID get to the title game. And I'd venture a guess that it rolled up a few one-sided scores of its own along the way.