I think its funny that there are so many different interpretations of the rule on this. You would think that the governing bodies (ASA, USSSA, NSA, etc) would at a minimum put out an easily discernible definition at least within the individual sanctions themselves. The current definitions leave way to many loopholes for teams to "justify" A or B. They are also (at least to me) confusing as to what portions apply to what groups of participants. You have to be a lawyer to get through the jargon, and even then they would argue what's what.
Has anyone ever heard of anyone getting "called to the mat" for not claiming the correct division? I know we took a team of "B" players to the ASA Eastern National "B" tournament a couple years ago, and there were a couple of teams that I saw that could have easily been "A" teams just by talent alone. I don't know if there are any checks and balances other than if a team wins the "B" nationals, that they are not eligible to play "B" again the next year in the same age division.