I don’t buy the “money grab” claims. We have 3 kids who play soccer, and they have played everything from rec, to bottom level NCSL (heck, one used to play ODSL!), to ECNL starter.
Yes, the coaches are better on the top team. Yes, the players work harder, are more athletic, more skilled, and take it more seriously. Yes, they usually get better field space, more training, more games, more scrimmages, and more tournaments. Yes, they may get Veo when other teams don’t.
But that doesn’t mean lower level travel teams are not differentiated from rec. pretty much everything I wrote above is true again for low level travel vs rec. Better coaches, players, fields, competition, resources, etc.
My view is to get in early to learn the structure, improve skills, etc. Yes, some kids are capable of playing rec until middle school and then making the jump, but I find those kids are usually superior athletes. I think if they had made the jump earlier, they would have been dominant.