i think your thinking is spot on.
Perhaps District 9 and District 12 can swap their district designation. That way current District 9 teams would stand a good chance winning a region game, and maybe even getting to the Sectional. But they would still have to get past District 10 ,even in District 12, to make it to the state quartefinals.
Of course, they could always go to District 8 and avoid District 10 teams altogether. But now they would have to get past the Chattanooga teams to get to the quarterfinals.