Dave, you are playing that old lawyer trick and making your case on the most absurd logical conclusion asking if they should play it from the ladies tees...
What do you gentlemen consider a worthy club championship flight field number of participants to be reasonably proud to be the champion of? Are only the top 12 that can play the yardage considered a worthy field? If so, go to it.
what about defining a champion field based on of course ~scratch handi-3 as computed on the tees back from regular membership based on that course rating and slope, and yardage sufficient that a reasonable percentage of the field (say 85%) can reach all of the par 4s with at least driver-3 wood, and may not be able to reach any of the par 5s, but nothing worse than a 7 iron for 3rd shots on the par 5s? Anothwords, I'm guessing a yardage that has no par 4s over 460, a majority between 310-430, and par 5s from 500-600. Par 3s can be anything up to say 240, so long as two of them are mid to short irons.
I'd like to be the champion of a club course where the likes of Corey Pavin and Fred Funk have a chance to beat me because they are great and have all great parts of the game except maybe length. If it is down to length as the most important determinant, then the long drive contest should be your thing, not club championship with only a handful that have a chance, IMO.
As I've admitted, my handi is 14 on our home course, and I would bet something like 20+ at Medinah #3 (not sure how that would work exactly)
It isn't about me or anyone else of higher handicap, who writes here on this board to determine how to identify how YOUR club champion is actually determined. But Ryan did ask the general question based on his set of criteria as he explained them. So, we had a discussion of "opinions".
It is up to YOUR club, and they have apparently done so based on criteria they determined was fair. If you can afford Medinah, I assume you can afford many other places. There must be SOME other club that would set up what you believe is your ultimate club test. If there is no other club, then you are really howling in the wilderness and against all conventional wisdom. Your membership fees should carry as much weight as the rest of the club. If they are all buddies and they have the power (and presumably the majority of members votes or confidence to stay on committees to make such determinations) you really have no gripes coming since membership is voluntary, IMHO.
Dave, Lawsonia should be such a cake walk to you at about 6800 tips... how would you ever take pride if you won the GCA.com Langford and Morreau tour of 2007 if we "made" you play it up with us hacks at 6400 that lets us all compete?