I do think the biggest issue involves Class B. Using the example Pospisil used (boy's basketball), the largest B school (Pius) has 50 more students than the next largest school (Elkhorn South) and 150 more than the 4th largest school (Ralston). Given the number of schools at the top, it might be best to expand A and contract B.
If there was interest in reducing the number of classes, I think most of the C1 and C2 schools should merge into a single class, and then leave a class (or two) for schools below 100 enrollment (or somewhere in that ballpark).
Having said all that, I believe this is easier to look at from almost any sport outside of football. The fact that we do have 11-man, 8-man, and 6-man does make the football classifications a little more difficult to find a solution.