That's pretty much how I'll deal with it once he either A: gets tired of it or B: gets cut from the JV or Varsity squad.
Thing is, they are opening a new high school in our neighborhood next year that he'll go to and they will "gradually" build their academic and athletic programs as the years progress, so each year he'll be in the highest grade. IE: 09 they'll only go up to 10th grade, 10 they'll go up to 11th grade, etc... so there is a good chance the sports program will also build accordingly and he will continue to "make" the teams as he goes on. If so, it's a nice situation for a marginal athlete, but chances are, they will get there hats handed to them by "real" high schools.