If gymnasts are getting “psyched out” by seeing another girl warm up harder skills with better form, then now would be a good time to teach them to be inspired instead. It only gets worse / better, as there’s pretty much always someone better. Eventually the athletes (and their parents) will learn that it really only makes sense to focus on yourself / your kid. It does take some time to come to this realization, though.
P.s. elite compulsory isn’t that big of a deal.