Wow, really, tell me more?
I keep repeating myself, I wonder if people replying to me are actually reading my posts...
School sports are about inclusion, team spirit and friendship. Telling a young kid "hey, you can't join our team because of who you are, so go look for sports elsewhere" is the opposite of what school sports should be.
Of course if you only look at it as being about competition, winning and getting future advantages, and for that you're willing to feck millions of kids over, then just come out and say it.
You don't seem to have a firm grasp on school sports then. There is a mix of competitive and recreational sports in schools.
You keep repeating that there will be no options for these children to take part in any sporting activity, but this is blatantly false when recreational sport (and mandatory physical education) will always be there. I'd wager the majority of any cohort do not participate in competitive sports inside or outside of their school environment.
Competitive sports (including those in schools) will always be at least somewhat exclusionary. Interest in a sport is not enough to necessitate an individual's participation in a competitive version of it.
Additionally, there are plenty of schools where, for a variety of reasons (including a lack of numbers), certain sports are simply not on the table for their pupils.
It's not perfect, but these things seldom are.
Anecdotally, my primary school used to beg boys to take part in netball because not enough girls were interested to even run proper practice sessions, let alone play competitively against other schools.
There were also girls (in my opinion, unfairly) "banned" from playing football after a certain age because it was no longer considered safe for them to play with boys, but a severe lack of girls teams in the area meant either quitting or travelling an obscene distance to find a new team, unless they were talented enough to be picked up by a proper academy.
I have a reasonable amount of experience with junior football coaching, and particularly in the younger age groups, almost every club is well oversubscribed in terms of interest versus the number of available spaces on each team, and this includes clubs with as many as six teams in an age category. These clubs will be almost guaranteed to see a fall in interest and participation as the teams progress through the age groups, and despite a wealth of interested parents/children at the start, there will not be a replacement rate of new participants as the years go by. This, coupled with playing-squad numbers increasing through the age categories until they reach 11-a-side will often mean teams "merging" and in a lot of these cases, some children will be "cut" from the team. However, this doesn't stop these children from playing in a recreational capacity.
Simply put, not all school or junior sports are about "inclusion, team spirit and friendship". They will be a core principle behind a lot of junior sports, but will not be at the forefront of competitive junior sports, where fairness of competition will be far more of a concern.