There's no giving up in my post. There is simply the acknowledgement that, for me, it's okay to lose.
Also? I don't agree with your last sentence, at least for me. I wouldn't pay for my kid to continuously lose because they're in the wrong division... but I would pay for them to lose if they're properly placed and they're having fun and being safe and learning about competition and how to work as a team to achieve goals and ... and... and all of the things you can learn from youth sports.
As hard as it is to believe, I don't care if my kids win. I don't. I want them to be and to do and to try and *so what* if they lose. They're going to try their hardest at other things in their lives and they're not going to win all the time there, either. Sometimes people will be bigger or faster or smarter. It's okay to lose - not to give up trying, of course, but if you try your hardest and still fail, it's okay. To me, teaching kids that winning is the best thing, so much so that you'd quit if you never win, deprives them of so many opportunities to see that life can be rich, even looking at the world from the second or third place podium.