Well if two high schools both had 15 person basketball teams, and one school had 2,000 students and the other had 200 students wouldn't the percentages be strongly favor of the larger school having the best 15 players? We are not picking randomly, it's competitive!
That's not the most important number. The most important stat is the size of the pool that's feeding the wrestling spots availble. Large population states simply have more candidates to choose from. If California and Wyoming each had a high school participation number of 2,500 wrestlers, according to your theory they should have equal quality. That's absolutely incorrect because percentage of high quality wrestlers increases in proportion to the size of the pool.
I get the difference of a basketball team has a set roster and 15 kids from WDM Valley isn't the same as Lisbon. But how does that apply to wrestling or even football. Cant as many kids at valley be on the wrestling team as they want but the can only start so many. Not sure if ever heard of a kid getting cut in tryouts of wrestling?