I totally agree! It's 100% glorified domestic competition these days! In my opinion, anything after division 2, maybe division 3, shouldn't be in the elite/rep category. If you can't make the first 2 or 3 divisions, you're a domestic player in my opinion.
As someone who came through the older system when there was just two divisions per age group on the west coast, and has also played at high level, I can honestly say I have found the skills and fundamental levels in kids in the new system to be very sub-par. Sure, there are some great athletes around, but due to the "quantity over quality" approach, I have now found coaching under 14s and under 16s to be quite eye-opening and a bit disappointing.
I agree that after the top division, the intensity from players and commitment of the parents/kids drops considerably. Kids today also seem to play multiple sports, plus play their domestic games, plus go away every school holidays and long weekends, have school commitments...etc etc. I rarely have all 10 kids at training, and because there's not enough courts available to cater to all the teams in the system, we now only train for just over an hour which means there is little time to do a lot of teaching. Growing up, we always trained for at least 90mins - 120mins. There's also the issue of there not being nearly enough decent coaches to go around for all the teams, which is why so many players are so poorly trained and have no skills.
I do recognise the upsides in having so many more teams and players in basketball too though. There are way more kids playing basketball now compared with 15-20 years ago, and it has helped revitalise the interest in basketball nationally. There's a lot more money for NBL1 programs, which is another reason why some clubs insist on having so many teams per age group. There's also a lot of "athletic" players in the system, but are they fundamentally better basketball players? Not even close.
To me there are lots of problems and the skill level has dropped considerably. I am amazed at how weak the players are. I also don't enjoy coaching players who aren't intense at the rep level and as mentioned already, don't even seem to realise it's meant to be a higher level of commitment and competition than domestic comp.
I could go on and on but here are a few thoughts.