Kids need exposure and iron sharpens iron. Maybe make him do extra work around the house to make up for it. The bigger stage seems like a great opportunity that may not come around again. If he would be buried on the bench them go local for sure. If he is good enough to have a nice role on the big team then if it were me I'd try really hard to make it work.
Nothing wrong with the local option if the big team is too much of a burden or if he wouldn't get much court time.