One thing you find out the longer you are in this industry: don't be surprised about anything - just because you haven't heard about it or don't think it is likely, does not mean it has not happened. What rivals do to one another in the battle for local supremacy if you will, often does not make this message board. The things I have heard this year alone makes me renew my claim I would never ever open a cheerleading gym. Too much backstabbing,m even amongst supposed friends.
While the rule is not perfect I feel it does help what I encountered when I first started teaching tumbling in cheer only facilities on 2004. Kids/parents would abandon their teams at the drop of a dime, even if they had a decent chance at getting to Worlds. There were even reports of changing teams at competitions - don't know if that was mere gossip or not, but those rumors were very strong way back then. The rule hinders some of that behavior. Of course those that want to find a way around it will. All the release does is give some of the leverage back into the hands of the gym owners where prior to the rule they had zero.
There should be an appeals board to deal with the extreme cases that are always presented as reasons against the rule. Some of the bias should be leveled out. But I don't want to go back to the days of cross country fly ins and constantly losing high level team members simply because one gym will give them a free ride and another won't either. Or because Gym A has a better chance of winning Worlds than Gym B so I will stay with Gym A and leave them high and dry in February when Gym B is ready to make it's hard push to Worlds.
Please note I have zero problems releasing an athlete if bills are paid. That I do not debate. But don't expect to ride on my train for free for years then bolt the gym with unpaid bills and promises of being paid that you never fulfilled.