I guess it really depends on where you live. Here in Orange County CA, granted - one of the absolute hotbeds of talent in the country - all schools, except for probably the smallest private schools, field a Frosh, JV and V team - and some even field Frosh, Frosh/Soph, JV and V.
The level of play at the Frosh level is good here, and at the JV level, real darn good, relatively speaking. I mean, if I needed a baseball fix, and passed by our HS fields on the way back from Trader Joe's, I could stop and watch a few innings of a Frosh game and it would be enjoyable, good solid baseball. Our son, who played Frosh and JV - not making Varsity until Jr. year is now a Senior pitcher in college who will end up logging over 200 IP in his college career - so he's always had skills. In HS, he played against numerous kids during both Frosh and JV who went on to become major contributors at major D1-D3 schools, some being drafted both out of HS and in college. If you make Varsity in our area as a Frosh, or even a Soph, at a competitive program, of which there are many, you are definitely in the minority. No shame whatsoever in playing at the lower levels for two years.