In my son's grade, there were an unusually large number of aggressive sports dads. In 6th grade there were 5 travel basketball teams, the point (supposedly) was to prepare them for middle school ball, but there were only 3 middle schools, so...
These same dads also started travel baseball teams. The point was to get more rigor than rec league, to prepare for high school. The first pulled out of rec in 3rd grade. Ours was next, after 5th grade. We agonized over whether or not to join the team; the argument was, if the better kids are leaving rec league, the baseball will be really bad. Another pulled out after 6th grade, and finally a fourth. They held tryouts but really it was about who you knew. Everyone knew which the better teams were; switching teams led to hard feelings in a smallish community. Of course, there were only 2 high schools, so...
Then there were the state-level organizations, which were not local. My son joined one of those after 2 years of local dad-ball that got increasingly frustrating for him. We traded one level of dad-ball for another; at least in the organizations, the dad-coaches had college playing experience. Our organization started with 2 teams at his grade in 14U, by 17U there were six. SIX! It was a huge money-grab and I didn't approve at all; some were indeed not very good. And, two of the local dad-ball teams kept playing through 18U, even though most of their players didn't even make the high school teams. But, they played in many of the same tournaments as the top state teams, and got pulverized.
Should all these players/parents have recognized the futility and hung up the cleats? No, why should they??? If the players (and parents) found value in playing baseball, more power to them. Some of the players on bad teams did play in college, and even if they didn't, they were presumably gaining an appreciation for the game.