Great idea but it might just be too simple of a fix.At some point, every club faces the lack of grounds problem. Some just more than others. Fixing this problem is incredibly difficult.
Everyone is whining about the clubs limiting entries. This came about as a necessary band aid but it does make things tough as you are essentially rationing spots. Since it is probably never going to happen to let clubs ration these slots efficiently through price, there are going to be additional band aids applied.
The primary reason for the huge demand for MH entries is because of folks wanting to get in to the MN. Alas the MN isn't going to change--it has no need to until enough clubs are fed up they quit the MN club.
One easy fix to increase capacity for MH slots is for AKC simply to remove the arbitrary requirements for splits. 60 dog limits come from the requirement to split. If the AKC removed that and let the clubs deal with it as they saw fit, it would greatly increase that availability of MH slots.
For example, my club goes with a 60 dog limit because we do not have the grounds to split. We do however have incredibly good and efficient workers. We could easily do 90 dogs in two days, but we are not allowed to. I am sure other clubs are in a similar situation. The AKC's heart is in the right place--trying to ensure a quality test experience, but why not let those closest to it determine that on their own?
Just by removing the requirement to split and let clubs set entries at whatever number they can handle would greatly increase the supply of MH slots. Instead of mandating a solution, let those closest to it work it out.