It should be...but it's also in the interest of a coach to have a team to coach. If they have to reject players, with the diluted pool, they can end up not having enough to make a team out of anyway. So it's in their interest to take enough to make a team and try to make it competitive.
The same goes for the interest of a club...they want to have teams and numbers...rather than lose the challenge team, they often choose to field one anyway rather than relegate to classic or rec.
