I agree that many clubs aren't using biobanding the way it was intended. However it's effect is working as intended.The reality is, most MLSN clubs aren't using biobanding the way it was intended. It's a rule that isn't monitored and hence clubs abuse it. A majority of the clubs use it for 2 reasons:
1) Bio band down really good players to help weaker teams win games
2) Park players who are struggling at their own age group simply to not being good enough...and aren't struggling because of late development. This helps the club to avoid having the tough conversation about a player having to move down to a team 2, and ensure the clubs keeps the player fees as the parents will still see their kid on a MLS team.
MLSN players and coaches don't look at teams as age alone defined entities that can't change until the end of the season. This puts an emphasis on player ability instead of parent/player/coach connections. Although it's obvious and annoying when a competitor is playing players down for wins. It's also a competitive advantage for the of age players to learn from older players. Two sides of every coin.