Just like many other programs, different locations vary dramatically. I also coach for this organization. We have our own practice facility. It is no Cheer Athletics, but we've got room for our spring floor and some tumbling equipment. My state does NOT do this pom thing. Athletes are placed by age and level regardless of how many sessions they've been here. The lack of progress you are talking about could almost guarantee the coach would not be around long. And probably over 3/4 of the coaches in our state are USASF credentialed. We also have a handful of coaches who are USASF safety judge certified (including me).
Our rules are fairly similar to USASF, although we stretch out levels 1 and 2 into a couple levels, and have a completely non-stunting level for our 4-6 year olds. From there, the are the exact same as USASF rules, with the exception of some stunts requiring spotters/extra catchers that USASF does not. Tumbling rules are about a level down for various reasons.
Personally, I believe it is a great program for introducing kids to the sport. It isn't for everyone, and that's ok. I like the fact that with the limited practice schedule we have, my kids can participate in a number of other sports and activities that they may not be able to otherwise. And competing within the organization eliminates the problem of attending a competition and only competing against one/two other teams. If the kids are looking for something more, I'm happy to send them to the all-star gym down the street. I've coached kids who are World's medalists in this program. But, of course, it all depends on the location. Some states are significantly more all-star focused, and some have more of a rec feel.