I tried to address this with a thread a couple of weeks ago but my schedule has kept me from coming back to follow up on it.
So I will just go right to the conclusions.
This system is not watered down and here is why.
In all classes, there have been a very small number of teams with a legitimate shot at winning the title each year. In A, there are 4, in 2A there are 6-7, in 3A there are 4-5, and in 4A there is only 3.
Other teams have an outside shot, but these teams are the only ones who have a real chance. And that is not going to change, as a matter of fact it might even be worse because under this new system each class may become even more exclulsive. How? Because those 15-20 teams are going to be spread among 6 classes instead of 4, leaving less favorites in each class and making them even more elite. For instance in A, now there are going to be 2 big time favorites instead of 4.
Additionally, the playoff format will not change and you will still have to win 5 playoff games to take home the hardware. That is true under both systems regardless of how many teams are in the class. Less teams will be staying home, but it will not make the playoff paths easier by any noticable amount. The early rounds will still be against your district opponents (I assume) and the later rounds will be against the best in the class.
So the playoff games themselves will be a bit different makeup, but the semifinals will still be dominated by the same old faces and I'm having a hard time seeing how that translated into a watered down system.
Bottome line, it will not be eaiser to win a title under this system and the additional 2 titles will still be won by one of the 15-20 favorites.