I have extended family members (wife's side) that have kids attend these type of camps. The oldest kid started attending in 5th grade and he is now in 8th. The second started this past year in 6th grade. Both kids play youth football and according to the parents they are "very good". They even sent the kids to PA to play in a youth all star game. The problem is that the parents don't have money. They call my wife, and other family members, each year to sponsor their kids for these activities.
They live in NJ and the HS football program in town is very good. My feeling is if they play for a good HS program and stand out they will get noticed. I think they are being taken advantage of by these youth camps. The youth camps, like this one, target people without money into thinking they can help them get scholarships. if they are standing out in HS, they can attend camps in So. And Jr season so other schools can see them.