As someone who has played "select" ball and someone who has worked in the parks and rec business for many years, I have seen the development of these travel teams and I have seen all the positives and negatives that come with it. Travel ball is an awful thing at an early age, but it is absolutely necessary for kids to develop. I didn't start playing travel ball until I was in the 6th grade. Even then we were considered a tournament team. We played in the rec league, but then after the season we played in a lot of tournaments, moreso than the normal all-star team. Before sixth grade it was all just rec then all-star. After sixth grade we became a straight select team, and there was one other select team in Madison also. That was not that long ago, but now you see 4 or 5 select teams at every age level starting at age 8 (or earlier). It used to be the select teams were the best kids of the age, but now it is just getting a team together of your friends and their kids for the most part. Anyone who has the money to play, can. And this really dilutes the talent pool in select. However, since that is about 60+ kids not playing in the rec leagues, the rec league is terrible. This means that if you want your kid to develop, then you HAVE to fork out thousands of dollars each year for them. It really is unfair because not everyone has the money to do this, but it is what it is.
Now some teams actually do have hired coaches that really know and can teach the game of baseball. Those are the guys you want to play for, but those are also the most expensive teams.
I really do feel sorry for the kids oftentimes. These kids have tons of pressure put on them by some of these coaches, and when parents are throwing thousands of dollars around, they expect them to be awesome. They don't really have the choice on if they want to play that many games or not, the parents make the decisions. Also, as others have said, many of the kids get burned out mentally and physically. I see way too many 9 year old kids throwing curveballs because the coaches don't know what they are doing and are just trying to waste the kids arms in order to win tournaments. Its amazing to me how many times I have seen a team trying to get around a pitch count just to get their best pitcher to throw the maximum (and sometimes more) they can. This is terrible for the kids arms.
If it were up to me, I would still want the rec ball with all-stars to follow, but that is not realistic anymore.