The format, whatever it is, is something the coaches would have agreed on. The only thing that would kinda maybe make a little sense is that it makes it more likely that there will be guys who steal spots due to a good draw, for example a format like this would make it way more likely for Schumacher to get a spot to Pittsburgh. And usually there are enough at large spots available that any wrestler who earns a spot but gets upset still gets to go, it's only occasional that somebody that is Silver standard doesn't get an at large. So, playing devil's advocate, this would help the conference get a couple of extra guys to NCAAs with limited risk that anyone who earns an allocation but gets a bad draw would end up actually staying home.
Somehow though, this will hilariously backfire for Iowa State.