The problem is there are so many of these games that there wouldn't be very many varsity games. I know I've said similar things before, but the last couple years my daughter played bb the team was around .500, yet there were very few competitive games, which is crazy to think. Lots of 25+ wins and losses. I'd say almost no games where the outcome was in doubt in the 4th quarter, maybe even the second half. There are some pockets by region and class where there can be competitive games, but it's hard in girls bb to get a schedule with some decent competitive balance where the travel isn't terrible.
There are already a lot of varsity games getting cancelled, but also times where a JV game was scheduled, but the mismatch is so bad that one team will bring their Freshman/JV2 team to play, or in the case of baseball even 8th grade teams vs. JV.
Competitive balance is a major problem in HS sports in Iowa. When you have these conferences that grow, shrink and change incrementally, and you have areas of the state that are growing like crazy and a bunch of schools and towns shrinking, it's time for the state to reset this. Leaving this up to schools and conferences to make decisions is not good for the student-athlete. It's a difficult balance between travel (esp. for high volume sports like baseball and basketball) and competitive balance.
It's never going to be perfect and there always have been and will be blowouts. But for a lot of sports and conferences it's just a huge mess. Reset everything and create conferences that have some optimization between BEDS/competitiveness and travel time. I don't think a conference including 2 classes is a big deal.