That's fair...but how do you keep that kid motivated then? Honest question. Because if his "ability" is capped, the odds of him getting bored are a lot higher. It's akin to why sometimes really smart kids in school have problems b/c they're just bored and seek bad outlets for their energies.
I coached 6 year olds last year in a rec league.
we had a bunch of kids who were of various athletic abilities, and then we had Nick (his name was actually Nick). Nick scored as many goals a game as he wanted- he was just another level above every kid in the league; great agility, quick, fantastic ball skills and soccer awareness. even when I put him in goal, he was just a great athlete and could stop most shots. little fella too.
we ran away with every game for the first part of the season- I talked with his parents and the league about putting him in the non-rec league, as his presence wasn't really doing anybody any good, even though he was young enough to enjoy going out and doing whatever he wanted against kids who didn't know how to tie their own shoes. parents didn't have the time or $ resources to commit to him playing in the elite team, so the league just shuffled him to the worst team. Let me rephrase- they were the worst team, until we lost Nick and they go him. then they were the best team and we were the worst team. at the least, Nick should have been moved to the older rec league- but they were full.
I think kids this young need to just go out and have fun, learning the sport along the way as best as possible. 7-8, I think they're better equipped developmentally (physically and emotionally) to handle the increase of commitment to playing more competitively if they have minimals. once they commit to playing more competitively- they commit to getting PT as deserved, IMO. utnil then, stay in the rec leagues where fun, basic development and participation are more important than winning (to me).