I completely understand not wanting programs to poach the best athletes from other districts. But preventing a talented kid from playing HS sports simply because he lives within the boundaries of a district stacked with athletes when there are other schools that would love to have him seems a little harsh.
As someone who played on a terrible HS football team, if I knew there were good athletes cut by the best teams in our league who wanted to play with us I'd be stoked. And I'd be ticked if the league prevented those kids from playing at all simply because they lived in the wrong district.