The whole system is flawed. Santa Teresa played for a State championship and only play 1 league champ in the playoffs. A B league champ. They finished 2-3 in league and their opponent in the State game finished 1-2 in their league. What a joke for either of them to be a considered a State champ when you have far superior teams losing in the first round of their section playoffs.
This system is the culmination of decades (literally decades) of trying to figure out what to do with the WCAL when it comes to the playoffs. In an NCS-type system, not only would Palma be crushing teams in the lower divisions, but so would Riordan and St. Ignatius.
I think the CCS system has two main flaws (which are related):
1. Insistence on including playoff appearances as a means to categorize leagues/divisions
2. Too many automatic bids
These are what allows the MHAL to remain an A league, despite being absolutely horrible.
No other CIF section as a powerful all-private school league to manage except for the SS. Not surprisingly, these two sections have similar playoff formats.
The CCS has always had the goal of advancing the best teams in the section, but that practice (while good, in theory) isn't particularly inclusive. It's not Pacific Grove's fault it can't build an A-league powerhouse with its meager 600-ish CBED.
It could be difficult to manage, but I'd like the section to adopt something similar to the SJS, where you might be able to move up or down from your league's placement, but not too far. Perhaps A league teams could only play in D-1-4, B teams from D-2-5, and C teams from D-3-5 only. Every other section has a mechanism to accommodate lower level leagues/teams and I think it's time for the CCS to do the same.
If it wants to keep the new Open Division, then something like what the SDS does (limiting it to 4 teams) is probably a good solution. Mimicking the NCS for this concept is completely devoid of the details of why that section did what they did.