Resolved? Maybe.
 

Well, we had our season-ending Board meeting last night and this certainly was a big topic for discussion. We reviewed the comments we received from parents and coaches, then analyzed the goals we were trying to achieve by doing this.

After about 45 minutes, we came to the following conclusion. We have our annual member meeting (members are all the parents, plus the Board and the referees) next month and we are going to propose to continue forming teams by school for 3rd grade boys and 3rd/4th grade girls (3/4 girls is one league). We will have an open discussion and then take a vote.

We did see some increase in participation at those levels (not really at higher levels) but we also saw a considerable increase in the number of blowouts, too. We'd like to strike a balance.

It strikes me that you may have to choose between participation and parity. It depends on where your priorities lie.