If i hear you correctly, your argument has two points... better quality games and better player development.
Player development is a sticky one b/c it means that parents and coaches of young players must think more about teaching the game vs. winning.
There was a great idea thrown out seeveral years ago about forming four division based on winning percantage over the past 10-15 years. After the initial year, there would be a promotion/relegation system. This would at least get the best teams playing together, but that concept would have almost no chance of passing.
The other thought is to do away with the concept of "regions". Let teams schedule whoever they want. This would do away with some of the massive blowouts that usually occur b/c two teams have to play each other. 4A and 3A teams would then apply for the playoffs much like 2A and 1A do now.
I personally think that Altidore's development is hampered by his decision b/c now is on the bench for a lesser team... look at what happened to Tim Howard when he went to Man U and his rise once he got playing time at Everton.
