I agree that you can't out-skill athleticism, but on the other hand, nowadays, all the best players are usually playing travel ball by 7 or 8. Very difficult to have kids fall through the cracks these days, and I'm not sure it ever really happened to a large extent. I think it's largely an excuse for folks who don't want to play as much baseball as the hardcores so they are trying to shame the system into playing less. Futile effort.It is about the collective action. It got set in action before I had kids and it's impossible to go back. Many play both though and the overall skill distribution isn't the same. It's not really athletic talent, it's skill developed. The travel kids have higher skill development as to be expected, however, there are MANY who are very skilled who get passed by as the bigger athletes gain skill and lose some baby fat over time or other kids get into it and practice.
I've also never seen any of these average athletes suddenly morph into a great athlete once they are in high school or whatever. What you see on that 7/8 year old field is largely what you're gonna see on the high school field, assuming they continue to play baseball.