You all may have seen a recent article in the NSCAA Soccer Journal entitled European Views on Youth Soccer. It is a very interesting interview with Chelsea's youth director,
Real Madrid's youth director, the German national youth director, and France's youth director. The interviews provide insights into very different approaches to youth soccer. England is club oriented, Germany as well, but a little more of a "federal system"; Spain basically does not have a youth system, and the French have a very developed system.
Note France has a youth director -- not the coach of the French u17 team or some such thing. France has a top to bottom youth system which is integrated into their public school system. Teachers organize small sided games at recess. Things become more competitive around age 13. It's interesting because they are not trying to spot the next Henry at age 10.
I also recall an interview with several US national team players, in which they were asked what needs to be done to "save" US soccer in the wake of our "disaster" at the World Cup (not really a disaster - but that's a different topic). Every one of them said there should be less emphasis on winning and more on technical skills.
Chico is right that you most often hear the development over winning argument made at the u9-u12 level. It's not a cop out. I saw a u9 player repeatedly kick the ball out of bounds when pressured on defense this past weekend. Smart defensive play? maybe for a 17 yr old. Helping his team win? probably. Helping his development? no. He's not precocious field tactician; he's getting advice from old dad on the sidelines.
I have seen younger kids pigeonholed as defenders at a very young age. Nothing wrong with playing defense, but let's face it; it's an acquired taste. Other u9-u12 "winning" practices we've all probably seen include benching weaker players, and fielding "A" and "B" teams in the same league. If a club with two teams in the same age group and league has one team that wins everything season after season, and another that can't win a game, something is probably wrong.
I like the classic and "pre-classic" programs, because they offer better instruction and a more competitive environment than the rec leagues. But I can't help but wonder if there is a better way to do it. Our system heaps a great deal of pressure on children, costs too much, and is far too parent driven. The constant competition in leagues and tournaments can definitely have a distorting effect on coaching decisions (my own included) and player education.