I have read with interest the comments made by several of you in this thread. This is good discussion and exactly what this message board should be used.
I was always intrigued (as a coach) with the old CMSA - Columbia Metropolitan Soccer Association - that tried to attract the top-tier players in the Midlands, but still offered the local clubs there place.
The problem CMSA ran into, in my opinion, was non-cooperative effort by some clubs to "release" their top players, thus decimating their local club teams.
In my personal instance, I coached a U16 (1993) and U17 (1994) team for CMSA that was comprised of kids from the following high schools: Ben Lippen, Brookland-Cayce, Cardinal Newman, Dreher, Irmo, Lexington, Spring Valley, and even one home-schooled kid. It was truly a "Columbia" team and they took great pride in representing the city/area.
As for the personal gain at the high school level, the two players from B-C that played on this team helped elevate the prep players come spring -- drawing on their advanced experiences and talents. It really was a win-win situation.
At the same time I served as Director of Coaches for the Congaree Rapid Soccer Association and also co-coached a team there during my tenure at CMSA, which truly encompassed the goal of making sure top players played with top players, but even my "high school" core guys were getting good training and competing on a level of their capability (i.e. Sandlapper League).
The largest obstacle that faced CMSA however, was field availability. We trained at Medowlake Park for the most part and that was really the only field we had access to as the other clubs squeezed CMSA out.
It can work in Columbia, but the powers-to-be have to work out the parameters to make it happen. I'm willing to represent CRSA if anyone wants to meet to discuss.