Is football and basketball this way? Is that how these 2 sports grew to be so popular in America? I doubt it, it grew because we let kids play the sport and did not make it about money and winning.
There's plenty of money in youth select football, basketball, hockey and baseball sports. Politics too. In fact, for most folks, select soccer has much less, not more, $ involved in it.
While somewhat of a thread drift, one of my pet peeves about the current youth soccer world is how, for the most part, kids tryout and contract to play for one team for an entire year. This isn't so in other youth sports.
Take youth hockey, for example, A patient recently related to me how the goalie from his son's U10 team made the local all star team, in spite of their team finishing last in the league.
This all star team will get together, practice and play a few matches with other all star teams from around the area (basically like Little League does on the way to the LL World Series). Having a friend on the all star team may bring parents and kids from the 'home' team to watch their friend play -- they are developing something that is virtually lacking in youth soccer (and US soccer in general) -- Fans.
This sort of all star league also promotes something that is lacking in the typical youth soccer experience with it's annual player commitment to one team -- in this youth hockey league, top players on local teams who strive hard to constantly improve during their limited league season have the reward of making an star team. Here they get a short team opportunity to play with and against higher level teams and players. Then, when that's over, everyone gets a break to let kids be kids for a while with many returning to their home team in the next league opportunity. Outside of ODP, this sort of stuff really isn't available under the USYSA model of player and sport development, especially for non-metro/ruralish teams where lots of WA talent resides (and withers).
There's several layers of this sort of stuff in youth hockey, culminating in professionally successful teen youth teams such as the Everett SilverTips, who are largely composed of High School aged kids with competition that is fully capable of filling big arenas with screaming fans...