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This definitely happens, IMO. But its really no different then other facets of life that people wish to "move up" in. You get to the point where you are satisfied, and do not wish to be a climber anymore. Job, Girlfriend, Money... you name it.
As for going down the ladder? Again, it happens. But not as much as it should. Particularly with baseball and basketball, being a varsity official should not be a life time job. Even if you are able to stay in shape, there gets to a point where you have seen too much, dealt with too much, and have lost your ability to view the game completely unbiased (at least in the game management realm).
I think some officials realize this and then take a step down for the good of the game. Others just keep whining about it, and become a worse official year after year at the varsity level.
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