Generally, the most competitive gyms have young compulsory gymnasts. In North Texas, we have a ton of amazing gyms, and usually the kids scoring the 39.00+ AA scores are in the Jr A bracket. Top-tier gyms are going to compete mainly 7 & 8 yr olds in level 5...by the time you're 12, you're a level 9. I think that's why the smaller kids score better- because they come from the most competitive, experienced gyms.
As a judge, I try hard not to factor in the "cute points." I can tell you from experience on 2+ judge panels that it DOES happen, but really not very often. I also don't judge the older girls more harshly-- that's just not fair.