It's too bad that the "grownups" have to get involved with making a bunch of high-strung kids even more strung out. They can behave just as badly (if not worse) than the kids.
I had a similar experience as you (valedictorian c/o 1993, similar class size). When I was a freshman, there were two of us who were tied for first rank. Halfway through sophomore year, I was first rank by myself, and I stayed there until we graduated. By the end of junior year, I was so far ahead that there was no way the salutatorian could have caught up unless I had totally bombed. Even so, senior year, I couldn't take a debate class because the debate teacher wanted to help the salutatorian win, and he had to stop taking Spanish classes for the same reason. The salutatorian and I weren't really friends in the sense that we didn't hang out together outside of school, but we didn't have any animus between us either. If the faculty had just stayed out of it, there wouldn't have been any drama at all. But it was such a negative experience with faculty trying to manipulate the results, even though I had "won" fair and square, that I chose to attend a small liberal arts college that grades completely P/F.