Amen to that.
The "Divisions" are not similar to soccer in the PAL because PAL is not a championship program. There is no prize at the end of the season other than the girls learning and playing with the other girls within their community (In short, it is an intramural program). The "divisions" are purposely not public (unlike soccer) because of the philosophy of the PAL. The directors place the teams in divisions based on 2 factors: 1- What was the team's record the previous year 2- Is the team basically the same make up of kids from the previous year
The reason for the "divisions" is to allow teams to play competitively.. NOT to win all of their games OR to be crushed by stronger teams.

The "Rule" (aside from boy's 5 and 6) is that if there are two town teams they SHOULD BE AS CLOSE TO EQUAL ABILITY AS POSSIBLE. (Unfortunately, you are right, not every community follows this). Of course, one or two players can make one team a bit stronger or weaker. This is why PAL asks that if there are two teams they be placed in adjacent divisions (A and B, or B and C, or C and D). An "A" division team and a "C" division team clearly means that one team is stacked.