I don't get the similarity to participation trophies and "everyone's a winner". All they're doing is putting a limit on this one player who's functioning like Tecmo Bo.
So the message sent is simple. "Don't be excellent. Just be mediocre. There there."
We don't teach our kids the real lessons of life anymore... about failing, about teamwork, about the reality that there's almost always going to be someone better. Sports teaches that .... it teaches how to fail, how to have your BUTT handed to you on a platter. And it teaches how to get up on your keister and try again. Tackle at the knees, wrap 'em up, and problem solved. If the coaches can't teach that, then that's a lesson, too: sometimes, the folks in charge haven't a clue. Hell, I've been in the workforce long enough to know the validity of that lesson in real life.
Sports teaches valuable things - this daft "rule" neuters excellence. Which says if you whine enough about someone being better than you, you can get big adults to change the world and keep it fair.
Well, real life ain't fair. Sometimes, sports ain't fair either. Lesson there for the learning.