This is the first step in watering down the cheer industry in preparation for Olympic status. In order to be considered a viable Olympic sport you have to show that you would have enough competitors to make it worth doing. Right now there are few countries that could field a competitive truly Olympic level team (USA, Canada, UK, Japan, Thailand, Germany (?), AUS). That is not going to cut it. They need to make it open enough that multiple countries could enter and maybe not win but could at least feel like they weren't wasting the money instead of funneling it into their gymnastics and diving programs. You can't compare cheer to basketball or gymnastics, those are both long established sports, that when established were not at the skill level they are now. They are trying to start cheer at the circa 1932 gymnastics level. Do I agree with it? HECK NO. I would rather there be a clear division between "acro" and all star cheer.
This is just the beginning. Call it putting on my tin foil hat but when it comes to this whole Olympics thing, Varsity isn't driving the bus anymore, the IOC is. While other sports have club teams, they don't operate under a completely different set of rules from their Olympic counterparts. They will continue to make changes until you have 10 levels and you can't do a tuck until level 4, can't compete a certain level until you reach a defined age...it's coming.