Speaking for myself on behalf of Vermont, it works really well for us. The big value of NEPL should theoretically motivate our local players to participate more in our in-state-only events if they do poorly or can’t participate in NEPL but still want to do well for the VT SCS.
We have two players coming in for the state championship from other New England states, and that is “displacing” two of our local players. Because of the large number of players who qualified in VT via the NEPL but are playing in other states, having these two out-of-state players means we’re accepting seed 70 rather than seed 77 as our cutoff.
As should be predicted, players interested in doing well in the VT SCS and playing in the championship has continued to increase in the three years we’ve been doing it, and I expect that trend to keep going.
Note that we’re far enough from the population center of New England that most or all top players looking to play in a state other than their home state will choose somewhere other than here to play. So I’d no doubt feel differently if I were in, say, New Hampshire or Rhode Island.