How would it take longer to have the same number of bands at contest - just with different categories?
Qualifying for Area would remain the same - alternating years, by classification. The only difference is some bands would advance to Division 1 State Championships and some to Division 2. MAYBE you'd have longer finals but that could be solved by taking the top (n) in each category instead of the top ten overall.
The only difference would be that we have more State contests, unless you ran it the same way.