What is the thinking behind these terminal u12 DA programs (if indeed that's what we're seeing - perhaps in a year things will look very different)? If the object of DA is to find and develop players, is u12 the right age to bounce kids out of the program? That's only 1-2 years. If a kid is in the pool to be considered a future pro at 11, is age 12 old enough to rule him out? It's particularly problematic because kids' bodies are changing so unevenly at that time. I would think after u14 would make much more sense to funnel kids out. Beginning of high school, kids interests and mentalities are really starting to change, etc. It'd give kids the chance to settle into the DA program and see if they can learn. If you're on a terminal u12 DA, you'll probably spend a good half the year jockeying for a spot at next year's DA club. Hardly the best way to develop.
The idea is to get as many players as possible into the USSDA player pool trained in the Dutch/Ajax/Cruyff/Barcelona 4-3-3 system. The pool of players will be narrowed at each age group by reducing the number of DA teams.
The USSDA wants to concentrate the best players on fewer teams that play each other, the only way to get that done is to reduce the number of DA clubs at the older age groups. There needs to be more clubs for younger players both to cast the widest net, and because very few parents are willing to travel at the younger ages. The driving most parents are willing to do for a top 16 year old is a lot more than what most parents are willing to do for a top 12 year old.
I'm not sure why you think jockeying for positions at other clubs would have any impact, that kind of stuff was happening before DA.
I think it's a good idea to funnel kids out at each age group. In fact I'd prefer to see fewer DA teams and more weeding out. There's too many DA teams for the level of talent out there IMO.
I don't think 12 is too early to weed out kids, I seriously doubt you will miss even one future pro among the kids weeded out at 12.
Also, what's in it for the clubs? Clubs have to incur all sorts of overhead to get DA status. That's a lot of expense for just the one DA squad. Basically all they're doing is making it easier for the full academies to scout the top players. Yes, they get that pretty DA logo on their website, but come u13 there are going to be a lot of unhappy families.
Clubs have to meet bunch of requirements to get DA status. Clubs with DA status can attract better coaches, USSDA also helps train DA coaches to make them better, which leads to a better product on the field, higher status for the club, which should eventually pull in more paying customers. DA has not been going on long enough to determine whether the expense of DA is worth it for the clubs, and only those privy to a club's books really know whether the club is making a profit off DA. The only benefit a club definitely receives from DA is higher status.
I'm not sure why you are concerned with unhappy u13 families. Why would they be unhappy? In sports you have to compete to make the top teams. DA is supposed to be about identifying and training the best players, not giving out participation trophys. If a kid can't make DA after u12, there are plenty of good non-DA options out there.