We are in competition with a lot of other sports. The general affluence of the families allows them to try more than one sport. When I was a kid there would be little to choose from, football in the summer and swimming in the winter. There has been a noticeable loss of interest by many clubs in the excellence end of the sport. Many of these clubs will have to become feeders to the bigger more committed programs.
Some coaches seem to have lost the belief that they can be successful.
They are possibly tired of hitting their head against the wall telling their club what they will need in pool time and equipment to produce that great athlete. From the swim club's perspective if only a few kids will benefit from that kind of thinking they prefer 20 kids to be at a lower level. They seem to think there is an unfairness to concentrate on just a few. But its precisely the kid with the talent and desire to work hard that needs to be taken care of the most. Those who are willing to invest the most effort and time are the most important part of the whole club system.