It's a little confusing what the main point of concern in this discussion is.
My .2$, it's the DVHL. Anybody can tryout wherever they want. Just because the program is free doesn't mean every player makes it to the team of their, (or their parents) preference. They'll still be placed according to eval results. Players move around season to season, if they live in the suburbs or New Jersey and the parents want to drive into and out of the city twice a week, why does anybody care? As noted in a few comments the Snider program isn't like every other program. It's a coordinated effort by the Snider Youth Hockey Foundation based primarily on learning. Either way it would be nice to know what the OP issue is exactly.