If it were up to me I'd run the state tournament in 5 sessions. 1 per age group, boys and girls. Keep the 16 man bracket. At the end of each session clear the arena and sanitize. Over the 3 day weekend:
Friday at 3pm: start to finish 8u state
Saturday at 8am start to finish 10u state
Saturday at 3pm start to finish 12u state
Sunday at 8am start to finish 14u state
Sunday at 3pm start to finish HS state
Looking at divisions from last year there was 450 kids at most. Even at 4 spectators per athlete I would think the expocenter wouldn't even be at 25 %
No ceremonies, just wrastlin.

As far as districts go I'd try and do the same, either only one or two age groups at a time.