Here is another thought for comments. Why not creat two or three Challenge Clubs in the state and all the rest play Classic or Rec? Even though we have 8-10 teams typically playing challenge at most ages, there aren't enough coaches or players for more than 3 good teams state wide...
Look at the first round scores, in some cases 2nd round too, of State Cup and try to convince people they should have played Challenge.
The Classic and Rec could have much greater emphasis, be less costly for the majority and still offer the opportunity of Challenge to the top players or those that develop.
These Challenge clubs would begin to compete favorably in the Prem League and in major ournamenrs nationally.

Bob