every school needs to have a primary team with all stud players and a secondary team with new/limited ability players who play in the AA division against each other.  that is a decision that must be made by the local school athletic program directors, but most won't do it out of some idiotic "perception" that they'll be seen as weak.  some schools already do this whether they admit it or not, but i say good on them either way.

competitive youth baseball divides up players and teams by their abilities into A (least ability), AA, AAA, and majors (stud ability) divisions.  it solves several problems.  it ensures that kids don't get buried on teams like you are describing.  and it ensures that they'll get to play, and play against kids with similar abilities.  it keeps coaches from being forced to play players that aren't of similar ability.  it keeps parents happy because they play.

but it will never happen unless infc and local athletic directors agree to do it this way.  parents too.  but infc can't even build a usable website so don't hold your breath