Sounds like a poorly run league. Ours limited it to 3 coaches/team, which of course they pick their own kid. We did have a team where those three coaches all had top kids one year, and then got a early pic and crushed. Daughter was on that team and they ended season something like 60 runs from the next team. But that was an atypical year. I think they had something like 8 of the eventual 12 all stars for the year. Being the only team that could throw from 3 to 1 was biggest game changer by far. She was also on a middle of the road team, and a team that sucked all season but got it together on the tournament and lost the championship game in extra innings. Sometimes it shakes out unfairly but that’s kind of how it goes when people are picking their own kids.
We’ve had the opposite experience. I’m not in a lower income area, however the league is located in one. Both of our closest leagues are, actually. There is a pretty solid range of racial and income/wealth demographics. BUT, everyone with any money bolts after 10U. At almost a 100% rate, it’s odd. My daughters found their preferred sports before that age but we have plenty of friends from the league and it’s been consistent.
I still don’t see how club teams are a deterrent. There are some that are big money, but there are “affordable” club teams, too.