Divisions are based on enrollment. Not how good you are or who goes to your school. "Competitive balance" has, and always will be, a plethora of excuses for (A) schools that can't win, and (B) districts who can't keep their kids, which goes above and beyond sports. Now, do these seemingly create "disadvantages" on the field/court? Possibly, but as a community, you get what you pay for.
Example... I live in Warren. Yes, the population is smaller than what it used to be, but there's more than enough kids here to have Harding be Division I in football. However, more people here are opting to send their kids to JFK, LaBrae, Howland, etc., which has Harding in Division II (football). Yet, do you think that schools like Marion Local, Coldwater, Steubenville, etc. care that the aforementioned schools are getting kids that would normally go to Harding? They could care less because their programs are based on having solid foundations both on & off the field. Transfers and the whole public/private crap are only brought up when certain schools win. Even when JFK beat Minster a few years back to win state (football), it was looked at as "the exception" instead of "the norm" because most of us expect MAC teams to beat their nonconference opponents.
As for Richmond Heights, why hate on their first state title ever cause they were loaded? It was already mentioned that they competitive balance number is 0! They've been "playing up" for years (I distinctly remember them playing the Terry Rozier-led Shaker Heights team tough) and now, they finally have one state title to show for it. Their dominance in Division IV this year pales in comparison to the way that MAC schools/Kirtland dominate the smaller divisions in football every season. Give Richmond Heights "their flowers" while they can still smell them and stop hating!
Meanwhile, SVSM is located in a large city with struggling public schools. The same can be said for every dominant private school, but SVSM also benefits from being the alma mater of arguably the greatest player in NBA history, who continues to pour into the school. That's another huge reason why kids want to go there because again, as a Harding fan, I know of many athletes who wanted to play here because of the alumni that came before them. And quiet as kept, as much as the phrase "bringing in kids" is thrown around, I promise you that there's schools that are never mentioned on Yappi that try to do it, but don't have the name/clout to pull it off. This is a fact, but of course, nobody cares because they don't win anything special.
People have their own personal reasons/biases why they choose to send their children to certain schools. If you belong to a community that is/on the verge of losing kids, that's an internal issue that needs to be addressed within the schools & community.