I vote for not changing the system at all. We all need to remember that most of us volunteer our time to coach, president or secretary of the clubs and run tournaments. Bracketing for a tournament takes long enough and who wants to add a few hours to that process!
Also, especially in the 12 and 14 and under brackets some have 4 - 5 "A" wrestlers. There is no way to spread them apart any farther. I don't want to sit and figure out who placed what at State, National, International, World whatever tournament! Or who beat who last week!
As some have said it all works itself out on the mat. Our club coach also has another opinion -that he wants our kids to wrestle the best competition and the most matches - we don't particularly like the BYE's in the first round. Pinning your way through a tournament doesn't teach you to be a better wrestler - but losing to a stud and getting closer to beating that stud each week - makes you better in the end.
Lastly, placing 3rd is not bad - many times the #3 wrestler, due to placement in the bracket, could beat the #2 wrestler.