A big problem with hosting the All-Star Relays is that its a thankless task for the host pool. You need to accommodate (and manage) ~1,000 swimmers from dozens of teams, not to mention all of the spectators. From what I have heard, there are very few pools that are willing to do it. In addition to the logistics, many of your members are likey pissed that the pool is closed for the day. Plus, many of the pools that have the space, etc. to host are not in the top divisions and likely aren't sending many teams to All-Stars (and thus have even less of a reason to volunteer to host). And, then, as you note, there is the further complication that hosting brings a whole bunch of annoying top-division folks to your pool.