Just look at Ducks 2 in AA. Did not make playoffs but that should not have been the goal. If they played A or Flight 2 they would have been bored and unchallenged. That team was the definition of progress and development. That team was playing good hockey toward the end which will benefit them next year
I appreciate your Candor Ziegler. This is exactly my point in regards to the essential issue with a lot of play up teams. You are just looking for competition that challenges your kids because you don't measure the success of your season by the actual league you play in. You are one of the first parents I've ever seen admit as much.
Your team objectively should have been in Flight2 given your results and losses to Flight2 teams. At least on the scoresheet you also had a close game vs. Kings2 and you will certainly be playing each other frequently in the next year. As in my conversation with BobbyOrr, I see how your team benefits -- just not how the rank and file AA teams benefit from playing your team. With that said, lots of people have talked to me privately about this, and there are cases to be made for some teams like the '06 and '05 years, pre-flighting system, where the teams were actually able to make the CAHA playoffs.
Usually those people keep saying "it would be a waste of their time to play teams their own age." I find that funny because the season and reputation of your teams is measured not by your success in the league you play in, but rather by your My Hockey Rankings rating, where you do play kids in your own age group.
Regardless, I don't see the practice going away soon, even if I question the rationalization and belief that entire teams benefit from playing older kids. Certainly there are always a few exceptional kids beyond the curve, but that predicts absolutely nothing in my experience. For some kids the process can be highly negative, and effect confidence and discourage creativity. A lot of that comes down to the coaching you are getting, and how your kid handles things.