The real issue is the one that will never be solved. It is the unethical recruiting practices of the few elite schools who win the championships every year. I have been coaching for a long time, and it is the same few teams in each classification in every state every year that go out and get transfers to come play for them, then they stalk these 8th graders at pop warner games, give them full scholarships just for football, then the other schools who do not have those resources cannot compete with that. The FHSAA won't stop that because when those teams compete with schools from out of state, they win and make Florida look better.
I agree with other posters that say that FHSAA will not do anything to lose money, so reducing classifications is fine as long as the amount of playoff games does not reduce.
I think a few options to consider might be:
1) Transfer rule: unless you transfer from out of state, you must sit out of athletics for an entire school year if you transfer from one school to another.
2) Classifications: you need to consider the private schools. Most private schools that dominate are in that 3A class. Something needs to be done, because there are a few teams in there that recruit on the same level as college teams. Everyone knows they are doing it and no one does anything to stop them. FHSAA needs to do something about it. Bigger private schools aren't the problem, because 7A and 8A public schools have enough students to put together competitive teams. If you have over 1500 students and can't win it's because of coaching.
3) The winning/losing percentage thing to factor in classification is a decent idea to mull over. The NFL has a model that allows every team to have a fair playing field. The ones that do well succeed. The ones who do not do well lose. Well there is a river of unethical recruiting money flowing through private schools in this state, and I am tired of only a few teams having a real chance at a state title every year. Winning a state title should not be a pipe dream for high school kids. They all should have a fair chance. If the state does nothing, then the independent schools will increase.
4) Speaking of independents, why doesn't someone create a state championship for independents? A small and large school division, then have a legitimate state title opportunity for the non-cheaters.The independent coaches would vote for all teams who want to enter. If schools do not want a school to join because they feel that they are cheaters, then 'the people decide'. Then maybe 90% of the schools in the state could be independent and the cheaters can all play themselves in the FHSAA classes.