because it is not a NATIONAL competition, it is a WORLDS competition. states make up countries, countries make up the world.Yes, they are set up to provide the non-US teams a way to have higher placements than they would if finalists were determined solely by how well the teams performed. However, just because there was "a reason" why it was set up does not automatically mean everyone agrees with it or that it is necessarily the most fair way to go.
If you feel that a gyms mailing address is relevant, why are you restricting it to country borders? Should they not have allowed both Spirit of Texas and Cheer Athletics into finals together since they are from the same state? Some states aren't as strong as Texas, how the logic different than discriminating by country?