Why on earth are they calling themselves "select" if they are going to play rec? When I was learning to play the piano (as an adult) it would have done me absolutely no good whatsoever to have Mozart come along, bump me to the side and start playing the piano over me as I was trying to learn a C major scale.
What the OP's coach is doing is selfish, wrong, and does nothing to further the sport. I hear an awful lot about coaches who register down a division with the explanation that they are going to play "up" in age level. A 10U team registering C, for example, so they can play 12U C, is ridiculous. If you really want to play "up", play 12U A. Then you are truly playing "up".
What the OP's coach is doing is selfish, wrong, and does nothing to further the sport. I hear an awful lot about coaches who register down a division with the explanation that they are going to play "up" in age level. A 10U team registering C, for example, so they can play 12U C, is ridiculous. If you really want to play "up", play 12U A. Then you are truly playing "up".