Since the tournament host (Vice) wouldn't host the Championship game, the only other fair thing to do is let the highest seed have home-field. Done. Then they scheduled the game the safest day they could, enough rest after the other district games and enough rest before a knockout game in regionals. As the article says Arman and Shelton both met at the field and decided it was unfavorable conditions, BUT Arman understood Siegel was the team who could improve their standing and gave Shelton the choice to either play the game or advance as #2, no PKs. Shelton decided that it was best to not play, end of story. Seeing as RHS is #1 seed they should receive the District Championship plaque and Siegel should receive Runner-up. I know it may seem unfair, but you can't play one game for 2 trophies. So Siegel should just take the Runner-up and hope to have a chance at Regionals. If it happens that RHS v. SHS is the Regional Final sobeit.
And to answer the question on if Regionals are unplayable, it is my understanding that both #1s would go through. A crying shame for Siegel if that would happen...