The bolded phrase is the key phrase.
Obviously you always want your team to perform well. But that doesn’t change when you’re facing a Michigan team or an Indiana team. You want to win the matches you’re in. You want to seed high. Etc.
What changes between an in-district and an out-of-district is that points “disappear” when earned by an out-of-district team. It’s beneficial for your ranking efforts if every point you fail to earn ends up disappearing, rather than going into the ranking of one of your in-district opponents.
Think of it this way. Say your team in ranked 5th at your event. If you’re ranked 5th at your event and the 4 teams ahead of you are from Indiana, you take the 5th most standing points away from the event. If you’re ranked 5th, and the 4 teams ahead of you are from Michigan, you take the most standing points away from the event. The total points you receive is the same in each scenario, but the latter scenario results in 4 fewer Indiana opponents gaining a lead on you in the district standings.

