Not to stir the pot 12ustingrays, and I sure don't disagree with what you are saying about parents wanting what is best for their daughter. But what sane parent wouldn't? Also, what does that have to do with what defines an elite team?
Finding the best fit for your DD on a team is doing what is best for her, whether it's a rec. team or getting her a tryout for the O.C. Batbusters. As a matter of fact, finding a team where all the parents, players and coaches ALL have the same objectives will make everyone's life easier - and make for a rewarding experience for everyone, especially your DD - rec. or elite.
Making varsity freshman year is an accomplishment, and should make any parent proud. But there are a few caveats here. First, much to my dismay, there are some high school coaches who will not put any incoming freshman on varsity - REGARDLESS of ability. There are a LOT of basketball programs that have this rule, but of course it all depends on the size of the school. Some small schools may only have enough girls to make up a varsity team! So, like the "top __% of graduating class", this statistic is is just a number that is skewed, because there is no standard benchmark for comparison. Most colleges don't put much weight on the "top % of class" figure anymore because of that. The SAT/ACT is a much better indicator.
I applaud you on your tourney schedule. Very competitive and should challenge your team. It's those challenges - regardless of of wins/losses - that makes a team better.
Sorry to get a little O.T...