I think NC is like every other state in this aspect. You've got CEA and Charlotte (and probably a few others...don't get mad if i left you out) that are elite gyms with several others snapping right on their heels, some gyms maybe just a tier behind that that are good quality programs but tend to be less competitive against the elite gyms and then a whole bunch of other programs that tend to stick to smaller competitions where the larger gyms don't attend and do very well there.
Basically, there's a program for everyone in the state (and in your area really). I totally believe some of the small programs that tend to stay with the small events would not want to compete against the elite programs. It's not their niche and that's not their clientele. I also totally believe there are programs right on the verge of being elite programs are contenders and have swapped wins with the elite gyms on multiple occasions. They, on the other hand, want to compete against the top teams because on any given Saturday/Sunday...they might just beat one of them....or not....but either way it s good competition.
I think intimidation might be the wrong word to use. The competitive gyms are definitely not intimidated, they want the competition. I don't know that the small gyms are intimidated more so than they just know they're not capable of competing at that level, so why put their kids and parents through something that will likely end up with a poor experience?
I don't call that intimidating, I think it's just good business sense for the smaller programs that cater to a different Allstar athlete.