Funny thing is, the reason I was pushing back on WCHornet was because I didn't feel his analogy supported a counterpoint to you, due to the issue I cited concerning different classes in the same leagues in NYS sports. NYS has no choice but to use a playoff system to decide who makes it to the States, because in their case, the league RS champions don't really mean anything within the State class structure.
As to your last point in this post, you are comparing apples to oranges. Conference tournaments are paid by the conferences, not the NCAA. So any money spent or saved by conference tournaments cannot be translated to the NCAA and the money they spend or save on the national tournament.
Speaking of NCAA money, D3 will be getting more. The percentage remains the same, but due to the increase in TV rights fees (mainly for March Madness), the percentage now translates to more money since the pot is bigger. This takes place I believe in 2024 or 2025, whenever the new TV contracts kick in.