There's always someone who comes in here and is baffled by why there is travel/select/tournament baseball when the kids should play rec. But let's just completely remove the usual from the discussion (level of play, better coaching, kids who what to be there), and discuss the not-so-obvious reasons. If anyone else has any, I'd love to hear them!
Population and Financial Reasons:
I live in Houston, TX. We have a metro area of over 8 million people. Here, there are thousands of select teams under 14. I am not exaggerating. It is also a part of the country that is a hotspot for baseball. There are not enough city parks, with fields, to accommodate that many kids. Some LL's have private facilities. with the exception of the massively wealthy neighborhoods, the only other ones are on the outskirts of the city, where land is cheap. The 5,500sq/ft lot my house sits on in one of the more affluent parts of the city, The Heights, is worth about $400k. buying land in the city is not an option.
Under a "just play rec" philosophy, tens of thousands of kids would be waitlisted on LL's because there aren't enough fields for them to play. The city has given our LL 1 big field, 2 minor fields and 1 tee ball field to use. The minor fields have to serve 40 teams from 7-12 each season. Our boys are starting games at 8:45 on a school night. We asked for more, as the league has grown and they said, no. We asked to help refurbish an older field. They said no. What are we to do to grow our league if we are limited by bureaucracy?
Socioeconomic Equality:
Given this, what would you like kids in a low income neighborhoods to do? We're always talking about baseball as a "pay to play" and having a high barrier or entry. That is true, but starting a team also has an advantage for low income communities. It is much cheaper to find 11 kids and parents, who really want to play, to get the money together for a team to compete, than to get a whole community to buy in and have the funds to maintain a high quality LL.
There are TONS of teams in minority populations that are able to play a bunch of rich areas because they play travel. Just that alone helps some of those kids make it on to "fully funded" teams with private facilities. I know because my nephew's good friend was one of those kids. He now pays ball in college.
Btw, we do have some small LL's that can only field 1 team, and they have to travel around the city playing other LL's.