Well I don't disagree with any of your points, especially if they said they'd show up. I do think it's more realistic that they just get reports from the youth team coaches, though, even more so with the younger kids. Sure, a kid could be great at age 9 but that may be that. You really have no idea if they'll improve over the years or if they other kids will be able to catch up with them as they get older. I mean, my grandson is that age and he can throw a baseball better than I ever could. That doesn't mean he'll be Dwight Gooden when he turns 18 though.
So yeah, I agree that it's not crazy at all. But I might just wait at least until they're early- to mid-teens before I did much real scouting.