What do you guys think? What would need to happen to get this rule changed and maybe a second rule for reed valve engines?
John B. gave you a great answer.
In addition, may I suggest that you check the AMA web for the AMA Competition regulations and check out the Contest Board Procedures / Rules Change procedures. Then you will have the information to initiate any changes, if after discussing the current rules with others that fly the event.
Good Luck.