Been on both sides of it. Made the semis of the WWBA with a national program and went 2-5 and 3-4 with more regional teams.
The biggest difference is pitching. The local team might be able to hang with the better teams in the bracket for a few innings. Our first guy may have been 90 but first in relief was most likely 82-85 coming off SS. The big teams have 93, followed by 90 LHP, followed by 93 again.
Even in the years we left with losing records - the kids were still getting plenty of looks and offers in the weeks following. Seems there is really one team that doesn't belong in every bracket. Could probably do without but even the teams towards the bottom - they're usually competitive with everyone except maybe the bracket winner. But it's hard to be competitive against a team with 25+ D1 commits and you only have 15/16 guys.
It's easy to look down from the top but there is still good baseball beyond the scout teams and the big national programs.
Also - don't know what funding teams are - they almost all pay.