A couple responses AGSWINAGAIN...
5 consecutive years is a LONG time. Kids don't usually get in to year-round until about age 10. Imagine they do it for 3 years, take a year off to try another sport in 8th grade, and then come back when they start highschool. They've done it then for 7.5 out of 8.5 years or whatever, but because they take that year off, they don't count in that stat. There aren't many kids in ANY sport that play non-school related sports for 5 or more consecutive years, all seasons of the year. You're ignoring that swimming is one of the few true year-round sports. Also, that means that when you're getting to highschool, if kids stick with swimming, you're asking kids to dedicate themselves to 2 practices a day. That loses a lot of USA-Swimmers who still swim year round in highschool. And you still lose a lot of kids who choose other sports. Do you often see kids who play highschool football play club basketball year-round, but not highschool basketball? Don't make the numbers sound worse than they are.
Your argument is that the only way to conserve college scholarships is to improve the raw number of swimmers who are swimming year round, even though your proposal doesn't create an increase in top-quality swimming. I don't think there's any reason to let scholarships hang around for just middle-of-the-road swimmers who don't commit to reaching their full potential. Swimming will never be on the level of football/basketball/baseball, but watering down the teams that do exist with scholarships for kids who half-a**ed it through a USS program is certainly not the way to do it.
Nobody ridiculed summer league. We were all a part of it at some point, and most of us probably enjoyed it, but it can only take you so far. It's like YMCA basketball. It's great for what it is, but it's not going to produce a whole lot of D-1 basketball players. There may be ways to improve the fun part of it without dumbing it down, but that usually requires committing MORE time, not less. Some USS teams are exploring more dual meets, but there's resistance because during the school year, parents don't want to go to a meet every weekend, or on school nights. They'd rather spend a whole weekend a month there, than half of 3 weekends a month.
During the school year, most sports only hold practices 2-or-3 days per week until highschool. Sports like swimming that rely so much on training and conditioning, that kind of attendance won't cut it.
USA-Swimming is doing a commendable job reaching out to minorities. Unfortunately, the resistance is more of a cultural machismo rather than anything USA-Swimming is doing wrong. Swimming is viewed as a feminine sport in many cultures (including the hispanics). I have a few theories on why. #1, it's not something that can be done inexpensively in low-income, minority communities, or even in more affluent communities where there's not a big demand for it(pools are expensive, and parents don't know how to coach it). This gives it the impression of being a "country-club sport", which it doesn't need to be, and it never gains a foothold in certain minority communities. Pools also take up a lot of room, which is at a premium in urban areas (not many inner-city golf courses either!) Furthermore, as I mentioned above, "speedos" are given such a negative stigma, that many cultures simply will not wear them. Heck, even in the majority (read: white bible-thumpers) here in Texas, Speedos are shunned. I was at a summer league meet in an affluent Houston suburb this Summer, and our opponents team president threatened to start disqualifying our 15-18s for wearing regular speedos instead of jammers, and the compromise was that they had to have shorts and put them back on before IMMEDIATELY upon leaving the pool. Jammers are improving this idea, but they're still awfully tight.
And with your complaint about being "money makers," you've opened a whole other issue that makes it sound like you have some bitterness towards USA Swimming, like your kid didn't make the competitive squad he or she wanted. Reasons USA-Swimming meets have to be more oriented towards money-making: Indoor pools are MUCH more expensive to build, rent, maintain, and fill in day-time hours than are outdoor pools, which are often subsidized by neighborhood dues. Year-round swim coaches are a whole lot more expensive. Summer-league team staffs are populated by high-school kids, college kids home from school, teachers who swam when they were younger and need summer work, and highschool coaches who don't necessarily have the greatest expertise. For USA-Swimming to make sure that they can can attract the coaching talent that the year-round swimmers who want to reach their potential demand need to pay a lot more than summer-league coaches make. People who have the ability to be good top-level USA-S coaches also have the ability to be top-level something else, and therefore won't work for 20,000 a year. Summer-league swimmers also have a much smaller coach:swimmer ratio (Maybe 15-1) versus summer league that runs closer to 40-1.
In summation, if you want to start a year-round team that's centered around summer-league ideals, go for it. Those kids won't do anything to increase the number of D-1 scholarships, and they'll get blown away at every single meet that they go to. For every kid you produce that wants to continue swimming in college at the D-1 level, there will be 100 under the current system who are significantly better but can't get scholarship money and don't want to walk on.