Our kids after the season get kind of a slash designation. So they are now L4/6. During the summer they track the skills and that gets posted. They and us parents know what they will need to move up and we can see what they have and don't. No letters, no special conferences, with a not moving exception. If they want to hold them back they will have a conversation with the parent. Parent gives input, decisions are made. There have been cases were parents with on the cusp kids, wanted kids moved and made a good solid case and the coaches moved them and kids did fine. it is really more about the coaches setting the expectations so the parents know what to expect. Sort of you kid does this level, she will have some struggles. If she stays her you can expect this. And we uptrain. Cases where the parent didn't want them moved so no move. So basically if you as a parent haven't had the coach chat with you or felt the need to chat with the coach, your kid moves up.
If your absolutely doesn't have the skills to be safe, you can insist all you want a move won't happen.
No drama, no pins and needles, they get told and back to business as usual.