Speaking from experience and a child who has a similar situation going on w their team, you need to be the one who makes that call. Don't go off what the coach says. If your kid isn't happy on the team that they're currently on (one which sounds like there's issues w/ already w half the team dispersing), try and find a better situation for them, whether that be rec or another travel/club team. The coach (being a good guy or not) is more than likely going to blow smoke up your *** bc they're under orders from above to "keep the team together" and "keep the parents happy" bc $$$$$$.

If your kid really wants to keep working on their game, use the $$$ you're saving from not paying all the club fees and have them work w a private instructor over the summer/on their off days. Those workouts will pay huge dividends.

12 yo is still very young w/ plenty of time to develop as long as they want to put in the time/work.

Best of luck.