Much ado about nothing, in my opinion.
If a player wants to play up, what's the harm? Assuming, of course, he doesn't whine about the players he's playing with being "sandbaggers" because they're playing in their appropriate division.
If a TD doesn't want to offer lower divisions, perhaps he has good reasons. At any rate, he's the one doing the work so it's his decision. If you think his doing so retards the growth of the sport, well, anyone else can also TD a separate event and offer Rec & Novice divisions.