The question here is not whether 1 is better than the other. But rather what is best for the players in those area's. For division 1 and 2 players, generally they have been playing for some time and have developed the basic skills required for the game. Especially at U/14 and U/16 level, these players have played for 7 or 8 years. However, in lower division and younger age groups, players have often not been playing for a long period. Or do not have the necessary basketball related motor skills to be in a position that requires the repitition to take them from being average players up to the next level. Remembering that these players, through their games have already gone from being beginners to average players.
If you look at either Skill Aquisition or Sports Psychology yuo can see that it is only those players who have decided to move to the investment stage of their sporting life (which would be considered U/14 div 1 and U/16 Div 1 and 2) that they really gain a major benefit from the extra trainings. Whereas the other athlete's especially those who are in the Sampling years of sport. ie Those playing multiple sports or for fun will actually develop quicker playing a second game rather than a second training.
The idea of a domestic compeitition is one that hope's in the long term to increase participation levels of basketball while also lowering cost for all to play. It also takes into account that kids usually enjoy the games more than trainings and are therefore more likely to contiue in a non-threatening game enviroment for a longer period for fun as the number of players who are able to continue down the development pathway to elite sport is minimal. I believe that both clubs will be providing other opportunities for players to improve their skills with clinics and camps over the coming years, to provide for those players looknig for further development.
If you have any further questions, please continue to post here.