^^ That's what development camps are for. One year our club didn't have a div 1 side so we got no invites to TI Camp. We rang the head coach at the time and asked if we could get any invites and he said no. However, he said he would keep an eye on the kids we identified in the development camp. The kid went to development camp and did well. He got an invite out to SASI and is now over in the states playing college hoops.
If this kid had gone to the elite camp. He would have not been ready for this level of competition and probably been disheartened, beaten and struggled.
There is nothing wrong segmenting kids according to their ability. It's unrealistic expectations that some put on their own kids that does the damage.
Infact, if you speak to sports psychologists and scientists or study the subject, this is actually good for their development. All the do gooders (people that make statements because it sounds like a nice thing to say, without thinking through the alternatives), are doing bad, generally make statements based on poor knowledge and research. They sink their head into a dark hole of their false reality, thinking they know it all, and therefore this negates their capabilities to learn and develop in life.