Damage
Yes. The probelm with putting Forestville 2 and Sturt 2 in div 1, is that the top teams will actually be worse off. Currently they get to play each other more times. Thus play more good games. Adding 2 teams into div 1 that would not be much more competitive then the bottom 2 teams would not really be an improvement. In U/14 girls it would mean that Southern and Eastern would have more close games, but they would still get smacked each other weeks.
If you look through most grades, outside the top 8 teams, the 9th and 10th teams are not that competitive. SO what IMHO is best if is Southern and Eastern have to play Sturt 2 and Forestville 2 for those posititons.
By having the competition at 8 teams comps, you would generally have a competitions which would allow 3 rounds. A 10 team competition only allows for 2 rounds plusa teams playing some teams a couple of extra times. I think this gives fore an uneven competition. If your team had to play both Foresatville and Sturt 3 times whereas sombody else plays Southern and Eastern 3 times, your team is disadvantaged to making the finals. Also, what it would do is make div 2 a much better standards of competition. In most grades you would have the bottom 2 teams from div 1 playing with the top 6 teams in div 2. I feel that this would promote players to stay at their current club rather than moving to div 1 clubs. And I would even suggest that a by-law be intraodued to either limit the numbers of players a club can take into div 1 in any 1 year, or to allow players that move after the summer grading season to only play in an equal of lower grade if they choose to move clubs. ie a kid playing for Southern in U/14 girls that didn't make div 1 cannot move to Forestville or Sturt to play in their 2nd div 1 team, but is allowed to move to either club to play in their div 2 team. This way families can decide to move due to issue's such as clashes in philosophy, but clubs can't use extra div 1 spots to 'recruit;.
Finally, I feel that this model works to force clubs to redefine their resource allocation into juniors. If your club did not have the guarentee to play in div 1 each year they would look at improving their service delivery and standards. And all club would be directly accountabe is to their efforts. And that if a club choses to change their philosophy, pro/rel actually would work in their advantage. If a lower club has a good group of U/10's, this group is more likely to do well in U/12's and wqoukld easily make div 1 even if their U/16's were in div 2.