Neither of my children would be happy being replaced, or going with a team that replaced their team members for reasons beyond injury, discipline or financial. So I wouldn't be happy with it. But I will say that there are plenty of other kids/parents on our team(s) that wouldn't bat an eye at seeing others replaced ( probably would have an issue if it was them, but oh well). So I'm not sure a program can even decisively be responsive to its "clientele".
Again, it all boils down to what we view as competitive, and what we deem to be acceptable in terms of competitiveness. And since there isn't really a good way to collectively incorporate everyone's view on the matter, I do believe it is up to our governing body to set the terms for this. Just not sure how they do so while relying on massive financial entanglements.