Part of the problem with AYSO is that it's been a victim of it's own success and it's own philosophy of balanced teams and everybody plays. In order to create balanced teams, you aren't allowed to pick your coach. But because AYSO relies on volunteers, you get a lot of parents that haven't played soccer trying to coach (one even wrote an article confessing he didn't know what he was doing). The problem is worse in soccer than in other rec sports because not everyone grew up playing soccer. Theoretically, with time that means as time goes by there will be less of a need for c, d, e teams, but the problem there is that parents are now stretched for time more than they were before and AYSO has an enormous problem trying to get parents who do know how to play to volunteer. Finally, there is the problem of equal playing time which means if you are trying to develop a player he or she will play an equivalent amount with another player who can't even get their foot on the ball...a problem which often leads to the "get it to Sally" school of AYSO coaching and can be frustrating for Sally since she's only learning to running and shoot and not learning to move around the ball.
I'd be more sympathetic to AYSO's predicament but they've also made the problem worse by creating the United & Extras competitive programs. And while these programs answer the question about what to do about parents who don't know how to coach, or players who can't play, it has further cannibalized the basic program by removing the best coaches and players. We can have our soccer competitive, developmental, or open to everyone/cheap....pick 2.