I agree with you 100%. Quite honestly, our HC/O wouldn't have a 14yr old L6. That girl would have been sent to JOGA (JOGA is a NJ thing. It is still competitive, but not on the same level as USAG and you do not travel outside of NJ - basically competitive rec) by that age. The HC/O has told the girls that she would not have a 3rd yr L6 and if you do not have your giant by the end of your 2nd yr, you are moved to JOGA. The average age of our L7s and L8s are probably around 11 yrs old.
In our gym the stars do shine, you definitely see the difference.....
I guess we are the exception. We just don't have the division at our gym. I think it is because of our HC/O and her whole approach. It also doesn't hurt that she's a mom to 4 of the girls on team, so she sees it from that standpoint too.