When my kids were in the lower levels (and for 2 of them, were young), they didn't care what place they got and they liked medals/ribbons no matter what. I like the boys system where at L4 DS would come home with a ribbon for each event, different colors for different scores - he pulls them out and laughs at the yellow/whites, is proud of the blues. My older son first competed at almost 11 - he could easily tell what was what...this last year he won tons of medals - even at regionals - but would be the first to tell you that its because of his age group - he's more excited to "epically fail" on some events but be at an age appropriate level this year (he'll place well in several events, just not likely all).
DD just plain didn't place except occ on beam (and at tiny meets on everything) until L7....only one meet went all the way out for her - but luckily both years she did something personally great (competed old L5 bars for first time ever and hit both kips and FHS, next year made state as an old L6 after training 2 months) so didn't care at all what her placement was. She does have a friend who last year found the same meets awards painful...at age 12. Unfortunately, now at barely 12 she has decided that last year when she placed in top 6 consistently as a L7 and 3rd at state, that she is a "bad gymnast" because she didn't move up to L8 last year after all (her choice)....so you see, its not always the awards that make them feel good or bad - its all inside the kid!
My point with that is that there is no "perfect" way to do this. Personally, I would opt for few medals awarded, I like the way the young/low level boys got "achievement" type ribbons that actually were a little linked to how they did so they could feel good but also strive for "all blue scores" next meet...
Certainly, younger kids need "kudos" for all the hard work and preparation they put into this sport (much more than soccer, etc at the equivalent age). DD old coach gave them candy, tiny presents, etc at special meets (first ever, state, etc...) - that's what she remembers. As people say all the time, the kids that stick with this are the ones with internal motivation - so no award will change that - worst coaching/parenting decision EVER to let DD stay back to "gain confidence by winning"....each kid will either find the motivation or not - bling won't help! (Now of course, I am assuming that the kid is surrounded by coaches and parents who realize that placement, especially at lower levels, is not what makes a L10 gymnast - if the family/team culture is that placement matters more than long term progression, than bling DOES matter...)