It's debatable whether the Duke's National team even qualifies as an eligible team per hoco bylaws. Do they promote tryouts open to all or is it select invite only tryouts? And yes, I'd be perfectly ok with the Duke's not playing because of a technicality. An all-star team does not belong in a local club league anymore than a club team belongs in a local rec league.

"Independent Clubs application to the league for membership require its team(s) to promote and conduct open tryouts to assure equal access to all players that meet the age restrictions of the team(s) being organized for play. All Independent Clubs must meet the ‘multiple teams’ stipulation under the Membership section of these bylaws."