You both have made really good points about the class. I think this transition to 1010s will take a few years to sort out. It is my understanding this move was in part to align with Europe standards.
Moving the kiddos up to Junior when they turn 12 sounds like a good idea at the club level and can work out if there are not a lot of established juniors but it ultimately hurts the regional and national level series.
There are also kids going into Tag Junior at 12 and getting out of Rotax.