That's if they don't get disillusioned with being beaten by older, stronger, more developed and mature competitors.
If the idea is to encourage young kids to compete, then I don't think this system works. And maybe to back this up, have a look at the number of juniors racing at State and National level. Not good.
Bit like the get lapped and get pulled from the race. With the short lap format, this comes into play very quickly. have a look at the State and National rounds and see how many were pulled.
Why would you bother unless you are in the top 10.
Guess this should have a thread of it's own.