@Regs
I think @Dude is right about somehow monetizing the development process. It's tricky and a bit of a Pandora's Box, but why would a club (youth or otherwise) devote resources to developing players when the Whitecaps or whoever else can just swoop in at any point and hijack the player? There's no motivation.
I would hope the thousands of dollars being paid by the parents would be enough motivation for club staff to develop the players. Whether we have the right people in place to do that is a whole different topic.
Keep in mind that our model is completely different than that in other parts of the world. Yes, clubs elsewhere get compensated for developing players, but they are also not charging the youth players to be trained. They are developing them in hopes that they will one day represent the club and bring it success or be sold on for profit. The benefit of this is of course open access for everyone based on ability as opposed to financial standing.
So how do we get from our current pay-to-play model to a club compensation based system? I have no idea. Can the two co-exist? We may soon find out as Crossfire in Washington State along with a couple of other club have a pending lawsuit against US Soccer over unpaid compensation.