Yes and no, depends on the division or team they are applying to coach, teams they have coached, if they have had the quality players to work with, the depth of players in that age group, have they actually developed kids or reaped rewards of others efforts etc. coaches can end up looking better than what they are. Some coaches are excellent development coaches in U12's e.g. Basic skill sets. If you can a quality coach like this then your in luck, the results may not necessarily be there as a lot of time may have focused on individual work (which it should be at that end the spectrum).
Then there is the otherside where I know a club on the Mornington Peninsula who looks at their ability to communicate; but you don't need to have any basketball knowledge at all cause they believe they can make a good communicator into a coach even if you don't understand the game, this is failing miserably mind you.
I think your right in saying some coaches are appointed because of who they know or some are appointed on how many years they have been coaching in the VJBL and get a position based on longevity rather than ability. I also think we have way to many teams and we are spreading our officials, our quality of players, our resources and our clubs too much.
Fact is clubs struggle for coaches and a coach with a CV stating VJBL experience is highly sort after as apposed to parents coaching if they can avoid it but no club can.