Antwan,
I am new to this topic so forgive me if I'm taking the spirit of these posts out of context but the beauty of a merit based system is that the 1A publics would compete up to the level they are capable of. In other words, they would never have to compete against a 5A school unless, of course, they were capable to play at that level. If the primary goal is to win, publics and privates should be opposed to any merit based system because under one, there is no place to hide. If the primary goal is to play against the best competition, then based on past performance a merit based system should sift out the right pool of teams for a school to compete against regardless of current classification.