There is a simple solution to all of this. For the sake of this discussion lets divide schools into 2 basic catergories.
Category A "traditional public school where the athletes have to live in that district to be able to play. Category B " parochial/private/prep/open enrollment public/magnet."
If school A and school B have equal facilities and resources and the coaches are comporable, School B has a competetive advantage. It is common sense. School B can get athletes from anywhere, where as school A can only have athletes who live in their district. Currently NY, NJ, CT, MD DC, DE NC, TN, Al, MS, GA, LA and TX just to name a few do not allow category B schools to play in the public school playoffs. They have seperate state tournaments. Category A and B can play each other in the regular season, but play in separate playoffs. Now you do not have to worry about competetive balance. And/ they have divisions in each category based on enrollment.
In Ohio I would imagine that out of the 800 schools that compete at least 25% would fall into category B, maybe more. Just separate these schools when it comes to the playoffs.
If a school want to recruit or has open enrollment ,fine. They get to play in category B . Just cut though all of the mess.
Just a thought