I"ll put spotting into two constructive categories. The first one is safety spotting while a kid, who has done all the proper progressions, transitions into the entire skill. I approach this not as a security blanket, but as a matter of fact, to ward off the "I need to be spotted because I'm not ready" perception. They're ready, and the spotting is just an included step to establish them with the skill.
The other type of spotting is something I'll call "immersion moments" where it's time to get used to the idea of working a new skill that's physically easy but mentally difficult. I use it as a whole group event to prevent kids from self-indentifiing as being incapable or under prepared.
A typical example of something I'll do for a two week span..... The group goes to beam and works in stations that include a series work area. I'll have 3 or 4 kids on two adjoining beams with me in the middle, and I'll spot one kid while the next kid gets set to go. A soon as the first kid finishes, I'll turn to face the other beam and the kid on that beam starts their series, I turn and position myself and the third kid goes. So basically the kids are working a series on beam #1 going from north to south....jumping off that beam, getting up on the south to north beam, and taking off as soon as I'm ready.
It takes about 20 seconds for 3 kids to go one time around the circuit as no corrections are given beyond "pep talk chatter" as they move through the exercise. They can get about 15 series done in a five minute span, and are too busy to think about anything other than what they've been taught to do on the floor line and floor beam, and the less they think...the better. It works as a confidence booster as they get little to no help from me after the first 4-5 series....pretty much just air spots, and the kids are so tired by the last 5 reps, they learn that the series isn't as big of a deal as they thought.