I feel like competing levels 1-3 is almost a waste of time but I can tell they are having fun, getting hooked on the fun of the sport and competing, and our gym does condition and uptrain quite a bit so they are actually very prepared for level 4. From what I can see.
Most gyms in my state compete level 3, very few do 2 and I’ve never seen level 1 in any competition. I think competing 3 is a good way for them to dip their toes in the water so to speak, get some experience and learn what it’s like to compete.