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Cov Cath currently has @ 570 boys enrolled. I don't know how old the stats are from the original post but clearly they are not 100% correct. Cov Cath will definitely move up to 5A with those numbers. Unless the rules change, they aren't going to allow teams to volunteer to play up so Highlands would stay in 4A unless their numbers increase as well.
I can pretty much guarantee that CCH and Highlands would continue to play one another regardless of whether or not they are in the same class or district. Too much history not to mention playing the best helps you prepare for the post season.