Our school is very small, about 300 students in PreK-12. We don't have discrete honors sections at the high school level. Every upper school course allows for students to take the class as honors. But, we also give students the freedom to move in and out of honors if they wish (i.e. to try it and then back out if it doesn't suit them). And, we also have policies about not awarding honors credit unless a minimum grade is achieved. If we create discrete sections for honors, we lose that flexibility.
In order to meet our school's needs, there would need to be a way to flip a switch to designate some students as honors in a regular course that would then be reported on their transcript and calculated appropriately.