It is the parents. I tell families with mite players to find a team your kid is happy on and stick with it.
Every season it's the same thing. Some people call it "A chasing," but I call it lack of foresight, as well. If your kid leaves a team where they are happy -- so they can play for a team with an extra A -- that doesn't mean they're locked in for life. The next season they might not make that team, it may have been a bad experience, or the team/organization could even fold. Then they're stuck and desperate to find a home.
Can't move down a level, though, right?
Multiply that by 80% of the folks out there, and you get what we are seeing right now.
It's absolutely stupid, and the sad part is that parents only realize they goofed after their kid's time is done and they're playing beer league.
The sadder part is that they took other kids with them.