Bink,
Personally I think the 10u division is a fantastic division to have. I have seen these teams play, and most of them really have a great time playing and the competition is good. We would never eliminate this division.
What worries me a little is the number of 10u teams that are entering other tournaments (and even ours, it has been hard attracting teams). I have seen some tourneys eliminate the 10s all together because of lack of teams. I think there are a lot of 10u teams out there, but they shy away from the tourney scene because they think the kids aren't ready for that type of ball. Each team has to make that call. But if I may add, I have had teams in the past who have gone 0-4 in our tournament and still tell me it was the funnest weekend of their season, not just because it was our tournament, but because the kids got a taste of tourney ball and they learned from their experience.