On your first point, isn't that why kids, adults, etc., do extra things to boost their resume, profile, highlight the extras, try to sell you on their value? Applying for acceptance to a University is selling...selling yourself that you have value, belong, and can be additive to the student base. Additionally, if I am a motivated, have talent, and want to compete at a high level I may want more than what AYSO has to offer. Why remove or limit that option? Club Soccer in its current form evidently is not for you, which is cool and nobody has a problem with it.
I don't get the entitlement you mention....Everybody has an equal opportunity to apply to any college/university/job. Nobody has an entitlement to go to any university. Unfortunately everybody's circumstances are different and are not equal...they are not the same and never will be...some people hit the genetic lottery, some come from families with more money, less money, abusive parents, alcoholics, some are smart, thin, skinny, fat, athletic, some not so smart, some driven, some lazy....there is never going to be a truly level playing field and life is not lived on a curve. Just look at sports...some teams are better than others, more talent, better coaches, club/team has more money...should we start spotting weaker teams points?