The only way the "lets have all the good local players play travel together full time" thing works is if it happens organically. Meaning that it starts out from genuine and original interest from the boys and the families. It isn't likely to work if it starts from the top and is sort of forced on the community.

In many respects, having the kids play at different places can benefit the HS program. Kids learn from different coaches and teammates, and can stay happy and motivated. Also allows different kids to get more reps in some situations, instead of sharing time with future teammates.