Wow I feel ya! We just went through the same issues! My advice is to check out other gyms in your area. My story is quite similar... A little bit of a long story. DD just recently turned 6 and we were in the same boat for 6 months. I had the same concerns with the rec classes she was taking with a few different coaches.
She started rec classes in September of last year, at the age of 5 1/2, brand new to the sport. Her first week, she struggled to even do a somersault. However, she loved it practiced a lot. She really did take off.
Within 6 weeks of her first class, she had her handstand forward roll, backbend, kickover, handstand to front limber, pullover (bar about a foot over her head). After 3 months, she was doing proper back walkovers, back hip circles, and cartwheel to handstand dismounts all on her own. She took her time to practice good form and she was so proud of each new skill she learned.
At this point, I asked a couple of her coaches if she was almost ready for the level 1/2 class. They all said "Not yet" ... Meanwhile she started to act up in class a lot because she was bored to tears going over the most basic things. The coaches spent a lot of time helping the other kids with very basic skills. My daughter would goof around (like a normal 5 year old) and practice harder skills while waiting her turn. None of her coaches noticed.
In February, finally a new coach said she needed a harder class... not just level 1/2, but Level 3, since she was ready to start doing BHS on her own.
In her new Level 3 class her behavior totally improved! She loved being challenged, and her skills really sharpened up. Before I knew it, she was running to a hurdle and connecting her ROBHS on the spring floor by herself.
I'm going into detail like this to really emphasize to you our frustration with the rec program. Seven months after starting gymnastics, she had a consistent, solid, tight handstand for about 2-3 seconds. She is very strong and did pull ups from a dead hang, and held a straddle for about 8 seconds. It was clear to me that the competitive track was a realistic goal for DD. However, there was no mention of moving her up to pre-team, even though she expressed a desire to her coaches, and she was right at the level of the current pre-team girls, she was just much younger.
Just for fun, last month, I enrolled her in a weekly rec class at another local gym, known for training gymnasts into optionals and beyond. They quickly requested she join their pre-team, and I hesitantly took a leap of faith and switched gyms.
At first, I felt bad dropping the rec classes at the gym in which she started out... I was hoping they would ask her to join pre-team eventually. I thought DD had a shot at making the real team in a year or two. I knew pre-team would be a good place to start. I made sure to not bother the coaches about it and I trusted they would ask her when ready. Come to find out, DD's old gym chose a new pre-team last month. Her tumbling coach said she wanted to suggest her for pre-team, but she'd never seen her on any events besides floor, so she didn't bring her name up. No other coaches mentioned DD.
Your gym sounds ALOT like DD's old gym... Very mysterious selection process for pre-team! I noticed it with a couple other little girls around the same age. They had the drive and the talent as well, but still haven't been allowed past Level 1 rec classes.
DD is very happy at her new gym on pre-team, and I no longer feel guilty for making the switch! There could be some politics at the gym that you aren't aware of. Best to check around at how other gyms are running their programs.