Back in the day with our local circuit, maiden, novice and open, no first place, three or fewer first place and the sky is the limit were the classifications. It was totally up to the entrant to be honest about their skill level.
I used to enter all three and get a low place, which bugged the heck out of me but also said that I was good enough to be in the placing possibly over other horses that had placed first in underpopulated classes. I can see where op is coming from, sort of, but it’s a little sour grapes to be telling someone not to compete here because they might be too good, best to be glad they are supporting the venue and work to improve yourself.