I think one of the biggest points that is being ignored here the presence of a neutral and disinterested third party who is responsible for the proper execution of the rules and regulations of the contest. Think whatever you like about that not being important but when you, as a competitor, have even the slightest inkling that something about the contest is fishy, it taints the outcome.
Consider this scenario: Joe Promoter is running a "self-sanctioned" contest and, in addition to his responsibilities as promoter, is also acting as "The Rep" for the event and is overseeing judging, adherence to rules, etc. Joe Promoter is also the sponsor of a team that is cooking in the event. The outcome of the event is that the team that Joe Promoter sponsored wins the GC. Does anyone honestly think that everyone who particpated in the event is not going to question if perhaps something funny might have happened along the way to manipulate the results? The presence of a neutral and disinterested third party repping the event would give all competitors the assurance that everything was done on the level and that the outcome was genuine.
Now, before anyone gets their panties in a wad and thinks I'm pointing fingers, keep in mind that the above scenario has not happened here, to the best of my knowledge. However, you don't wait until your house burns down before you think about getting insurance. Just the opposite. You get the insurance to protect yourself. Having a neutral and disinterested third party as "The Rep" is the insurance policy.
Another thing that I think needs to be stated is that while the money needs to be right at an event, money is not the only consideration that I and others that I have spoken to at length on this topic consider when deciding whether or not to enter an event. Sanctioning has been right at the top of the list and KCBS is the sanctioning body of choice because of the assurance of fairness, the judging process and the fact that it is "The Gold Standard" in the industry.
You can tell me all about how great it would be to have an "Arizona Sanctioning Body" that will be the method used at all contests in the state and I'll tell you that the two biggest promoting entities in the state can't agree to get along so how is it going to be possible to get them to agree on the rules for this new sanctioning body? You can tell me that the new rules will be better and will target all the things that people think are most important and I'll tell you a couple of stories about how the technologies behind 8-track audio tape, Betamax video tape and Apple computers were clearly superior to their rivals but that cassettes, VHS and IBM PC beat them in sales. Why? Because the market chose cassettes, VHS and PC just as the market has chosen KCBS. This is a fact, like it or not.
What I read as the underlying message in this thread is that "self-sanctioned" State Championships are going to be abundant and likely at every contest possible because it serves the best interests of the promoter. And while that may be true in the short run, the contests will always be small because there are way too many contests out there that are going to be KCBS sanctioned and out of state people, given the choice of driving here for a "self-sanctioned" event with no guarantee of a fairly run contest or going to a KCBS event the same distance away, they'll choose the KCBS event the vast majority of the time. And so would I.
The mantra of many financial planners is that people don't plan to fail they simply fail to plan. Look beyond the first year of any of these "self-sanctioned" events and they'll likey never be qualifiers because there won't be enough teams (25) in attendance. They'll just be come backyarders with a decent prize pool. Again, like it or not, you can get on the KCBS bandwagon or wind up with the 8-track and Betamax crowd.