Looking back to the LL years the proud dads could sometimes be overwhelming but they are the reason we have these organizations. Without them there might not be any baseball. But I know the realities of All-star selections. At some point,usually about 13,many of the kids decide they don't want to play anymore and the weak players start to be weeded out. If your son loves baseball he'll hang in there and continue to thrive.
My advice- do what you think is best even though it may make you unpopular with the LL dads. Just try to be gracious about it. At this point with my son playing college ball I'm glad we did have son take a different path but I know when he was younger there were lots of people talking behind our backs about our decision.
Our local high school now has 3 dads coaching the varsity team. If they didn't do it there probably wouldn't have a team. They do it for free too as there's so little money in our CA schools.