At this point, just let them play. Nothing you do at age 6 or 8 will help them.
I got participation trophies as a kid and I'm the same age as Michael Jordan, Charles Barkley, Roger Clemons, Reggie White and some of the most fierce competitors ever. It's a non issue. Getting or not getting a participation trophy won't affect anything either way. 99% of the playing we did was without any trophies or adults watching. I was a D1 athlete btw.
This is at least the 3rd thread along these lines in the past few days. Here are my previous responses:
----- Dad considered moving schools for grade school sports
Don't worry about it. Don't make the decision just on sports.
There's some correlation between athletic "talent" before puberty and after, but not a lot. And when he moves up to junior high it'll be a whole different pecking order. Grade school sports are dominated by kids whose parents care a whole lot about it along with a few natural athletes. Junior high those kids are still there, especially those who held their sons back in school so they'd be older and better at sports, along with the kids who develop early. Think about when you were in junior high, wasn't the kid with the mustache in 8th grade the best athlete? And he was probably a chubby little guy by 12th grade.
Senior high post-puberty talent takes over. Of course it depends on the school, especially how big it is.
We got sick of youth sports in 6th grade and my son didn't do any organized sports in 7th and 8th grade. Got into skateboarding with his buds. He did go out for football and basketball in 9th grade and got grabbed for track. Of course it helps when you can dunk at age 13. Played varsity football and basketball at a large school in high school but excelled more in track. Was a D1 All-American in the decathlon in college.
Meanwhile a lot of those kids whose parents were super into sports in 6th grade didn't even play high school sports. They lost interest and/or didn't have the talent. This was at a big school. I hear from kids who went to small schools where everybody got to play everything and that sounds so much better. It's a shame when kids who love sports don't have the opportunity in high school.
So if the other school has a good group of kids who are into sports and it looks fun, go for it. Pursue fun and don't worry about "development". Junior high shuffles everything as does high school, so it's hard to predict.
Enjoy it and don't take it real seriously. Watching my kids participate in sports has been one of the great joys in life, but when I see 6th graders now I think "did we really get so worked up about these little kids playing a game"?
----- Tell me about your parents if you were a D1 athlete
I was a D1 high jumper, so I guess that counts. I had wonderful parents who didn't care a bit whether I did sports or not.
I was real involved with my son's sports but never pushed. He didn't do sports in junior high but did high school football, basketball, and track. He was a D1 All American in the decathlon but mostly on natural talent. Would obey a coach and give it his all with a good attitude in practice but not self-motivated, never did anything during breaks and summers. Maybe I should have pushed more and instilled more motivation, but it turned out okay.
https://www.bobbigelow.com/just-let-the-kids-play.htm