That's weird and unheard of around here! No one gets forced into a division unless their rating got bumped since they reg'd, and that gets handled by the books.
I've seen it at the unsanctioned events, where it makes sense only have 2 divisions and it gets discussed and people are okay with it and even one guy wanted to play AM2 by himself, realizing after the first round that it was a pretty stupid decision. BUT, he was allowed to do so, and, hey... he won!
Putt and approach and shortrange: Wizards!
Mid range: Rocs, Comets Long range: Teebirds, Leonards
Distance: Vikings Utility: Firebirds, ???