Instig8or is seeing much sarcasm in many of the responses to this valid question. In our area too, we see an over-all degradation in the level of team ability on average in u12, u14 and u16 divisions. There are still the same 3-4 teams that compete at a high level, similar to the oft-bragged about SoCal elite teams, but the average level of play by the other teams seems to be deteriorating as the number of teams over-all seems to be on the increase.
Perhaps a rephrase of the original question targeting a different direction;
1) If your DD was playing in a showcase tournament, would you want her to play against the very best players around, or would you prefer she be the only player with talent?
--- The answer to this is pretty obvious, so move on to the next segment...
2) DD is younger, and playing in u14 - she is a talented player in her own right and the desire is to get better, not just go out and win every tournament and bring home another one of those little trophies that we all cherish so much. Again, do you want her to be the best player out there where her confidence shoots through the roof, or do you want her to be challenged and always having to work hard to stand out?
3) Second-to-Last; DD is a marginal player and is definitely having fun but based on any factors you wish to cite, she will never move to a higher level of play. She competes well in rec, enjoys the trophies and ribbons and wants her soccer-mom in the dugout to share the cheers. Does she play in a "lower" level of ball at rec or whatever the equivalent travel level is locally, or does she play on an "A" team (presuming she can make one) and rarely/never succeed?
4) Finally - same as #3 except Dad blames the coach for his daughter's lack of success and goes out to start his own "A" team, filled with those who hop teams after being cut or always playing on a marginal team the season prior and they seldom win unless playing at a "lower" level tournament. Is it right that this team competes against true "A" teams in whatever the high level organization is in a given area? Or should teams have to qualify to move from "B" level to "A" level, similar to mens SP...?