I would keep at same number of teams. Just add one week to the schedule to spread the games out a little more than the Tuesday / Thursday / Saturday....that Saturday match is super tough. Seeding 1-16 for Upper and Lower would be good to see so the best teams have chance of meeting in Upper and Lower State Finals.
The committee would be the key - and teams would need to play across conferences to get range of quality comparisons - so those 5A vs 4A regular season matchups would take a hit.
Finals should be at USC - Columbia stadium if possible. Great venue and players would get great treatment there I would expect. All games through Upper and Lower State finals should be at higher seed.