First thing is to allow the kids' love of the game to make decisions, especially early on. Secondly, find the best team where your kid gets ample playing time, but is not the top one or two players on the team. If you kid isn't getting playing time, find another team. If your kid is the best player on the team, find a better team! If you follow that advice, you will find yourself at whatever level your kid can successfully compete and have a chance to grow.
As far as the leagues, they all have there plus' and minus', but ultimately, the teams in the area make the leagues, it's not the other way around. Must of us that have been through the crazy life that is travel ball, have kids that have played in numerous different leagues over the years.
Good luck and have fun!