Reading through all the posts, I completely understand the different points of views. IMO, to answer your question, I would say no. and this is not because I feel that youth sports is not too competitive, it is; however, when you take a look at the reasons it has evolved, to answer no, would leave us with a very unpleasant alternative.
The reasons I feel that youth sports has become so competitive is because kids have to be a part of organized activities because of the alternatives: watching TV, playing video games, and getting very unhealthy due to inactivity. Back in the day, you could go outside and run, ride your bike, play stick ball, etc. But because of increased crime even you your suburbs, this is no longer a safe option......so most communities now have rec programs. A place for neighborhood kids to go and participate in physical activities (sports). This is a reasonable alternative. You have those parents who can afford more puts their kids is private activities, mostly because of the parents, or becasue Susie is practicing cheerleading with the rec program and Kathy has no one to play with......
As to the competitive aspect of the activities, well lets face it, you have competitive adults coaching kids and basically competing with other competitive adults.....:) it is evolution and there's no way to progress without it....
long post, but hope it helps....