Shame on him, then. Develop what you have.
People need to stop behaving as if playing lower level hockey is somehow less. Kids learn the same life skills, get exercise, learn discipline, friendships. It's a great game, however you are picking up the stick.
That's one of the perils with non-parent coaches, they often times regard it as "their" team and make decisions based upon their own personal agenda. It's incumbent upon the organizations to keep them in line.