The "good old boy" politics to which the OP refers is probably present at some level (big or small) in all officiating associations. In a group setting, it's almost impossible to remove politics from the equation.
However, I completely agree with the others who are right to say that (1) it won't hold back good officials who are truly intent on improving and (2) you can complain about it or deal with it.
Locally, we have two basketball associations. The big one has 95% (or more) of the games and the small one gets the balance, but the small one also books for several NAIA colleges locally and has some top-caliber officials. I ultimately went with the smaller association, knowing I would get fewer varsity games but I also got intense "coaching/mentoring/harassing to improve" by the guys (and gals) in our group. For me, it was the right decision but I certainly don't knock anyone for choosing the larger association. Simply a matter of preference.
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I don't suffer from insanity, I enjoy every minute of it.
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