Mine had 3 passes in level 7. She watched those with 2 passes kick her arse. Three passes are definitely not needed, and honestly, it would have been smarter for her to have two.
I have actually watched a meet where a girl got a 9.5 on two passes at level NINE. Yes, she won. But by then you would think the coaches would definitely want 3 passes. The child in question is now working three passes for 10. Her tumbling was fine btw....amazing, honestly.
ETA: According to my kiddo, in general was that most gyms whose girls had 3 passes at level 7 were thinking *future* with them. This is not a judgmental statement, it is just she found in terms of watching girls. Typically those with 3 passes that we saw, for the most part their coaches could probably see them moving forward with the sport. And honestly, looking at my kid's gym, this logic does make sense. Obviously though it does not make sense nationwide, but thought I would throw it out there.