I get what you are saying, but it really should be a non issue. My biggest issue with a stand alone U16 team is I think it would allow clubs to play U16 players in their own age group when they should be playing in the U17 age group. You are taking a pool of 25 players and creating one that’s 50 players. That waters it down.
If a U16 kid can’t make a U17 team, I doubt he is going to end up being a superstar. That said, there are examples of kids that drastically improved after U15. I would rather a coach be able to identify a kid or a couple of kids that have potential, let them train with the U17 team and play in a local league at the weekend. I would much rather have that than create another age group for the 2/3 late developers per team that could exist.
First of all, 2-3 late bloomers who turn into something off a U16 team would be a great success ….
Personally, I see pros and cons to a 2-year, U17 age group for my own (05) son. He will very likely make the U17 squad, but do I think that is best for his development? If the emphasis on our teams was true possession/quick passing/decision-making, then playing at U17 can help. Of my own son's strengths and weaknesses, quick passing/decision-making are strengths and he has done well playing up a year in friendlies already. But, how many truly creative players does the U.S. develop? The issue I see with the two year age group at this U17 level is that there are HUGE physical differences between kids who have already sprouted/filled out and kids who are just starting that process. You see more emphasis on just getting rid of the ball quickly before you get squashed. Playing on age, the game has more dimensions - the element of creative 1v1 dribbling in addition to passing becomes more realistic. We should want to keep developing that quality. We aren't developing many of those types of players in the U.S.