Every team or organization is from somehwere. So this point works aginst everyone to some extent. Therefore, the perception is that where they are from will always get the biggest benefit. It would be intellectually dishonest to say that this never happens, but I think that it actually happens the way it was implied above far less then it is made out to be.
In the end all of the players who intend to play HS ball benefit. It is one of the main reasons for doing travel ball in the first place.
Again best advise is, do your homeowrk. Also attend the tryouts and ask questions. Also talk to parents at the tryouts who were part of the team last year. Most will be honest with you.
Finally this is very important, be sure to ask what the team or organizations goal is for each team. Seems like a simple question but the answers may surprise you. Also, do not just accept the answer given. If they tell you that they intend to compete for the ASA national championship then they better darn sure have a plan about how they will go about that. It will not just happen because someone says it will. Spend your time and money wisely.