My youngest son plays on a team, that when my other boys were younger, would have been considered a very good rec team. Several of the boys including my son do not play in the spring for their HS. These are multi-sport athletes who have baseball as a second sport. Some of these may have the opportunity to play at the next level but just not Baseball, but still love the sport.
He has played some level of travel since 11U, they play in a local league and travel to two or three tournaments a year.He decided to focus on wrestling, but did not want to stop playing baseball. He considered playing Rec ball so we made a point to get to several different rec leagues for his age. After watching the games, he committed to his travel team for one more year. He did not know the kids playing rec and he felt he would be frustrated with the level of play.
The important thing is that the person scheduling tournaments for these type of teams to truly evaluate the talent you have and find appropriate tournaments for them to play in. The Manager for team schedules smaller tournaments that is mostly local talent. He does not schedule them for big tournaments that pull teams from two or three states or nationally. He sticks to tournaments that have under 15 to twenty teams. We want the boys to go out and compete and have fun. It is no fun to go out and compete in the bigger regional tournaments and get your brains beat in for three of the four guaranteed games and end up playing a consolation game that means nothing and getting your brains beat in again.
I think the problem comes in when the managers of teams like ours decide they want to play the best competition and go to the big tournaments, and get run ruled every game. It comes down to Accurately judging the talent on your team and scheduling accordingly.