I think kids should prioritise their own development in the junior basketball world. Find a club and coach that will invest in them and their teammate's development as the number one priority over everything else, including winning. Junior players have a short runway to impress, whether it be the traditional state/national/AIS path, or one of the other paths like impressing enough on a US tour to pick up a college offer.
I think where they play on Friday night, and whether they win their games, matters a lot less than most people think. For the traditional path, it's about impressing during those state and national selection trials and tournaments. There was a kid in the all-conquering U16 Vic Metro boys team this year whose Friday night team came 3rd-last in VJBL3. If Friday night really mattered, would he have made that team?
The biggest gap I see with kids at tryouts today is the lack of basketball IQ. For example, the kid is a really good finisher, but now he's driving to the hoop and a 6'10 shot blocker is waiting for him. Does he have the passing skills to dump to the open man in the dunker's spot? Does he even have the vision to see him? Can he run a pick and roll as a small, does he even look at the roller? Does he even use the screen properly?
If a coach is not teaching kids how to be smart basketball players, and not just fundamental basketball skills, they are doing them a huge disservice in chasing their dreams. The kids will get found out at the high-level tryouts.
Also, a pet peeve, don't play for a coach that prioritises winning so much that they play a zone the whole season. The kids aren't going to develop the man-to-man defensive skills they will need to defend elite level players later in life.
If a kid is getting wooed by an association who says things like "we are assembling a team of 10 great players and we are going to dominate VC", I'd be wary, unless they are also things like "we are going to draw up an individual development plan for you to capitalise on your strengths and address your weaknesses". The latter is what really counts for the kid in the long run.