That winning = playing another game and losing = going home.
When I coached 12U (two seasons), I batted everybody. I had only 11 (actually just 10 the second year), so it wasn’t that harmful to take that approach. Certainly could be if you’ve got 12 players and the bottom 3 can’t hit a lick. (Of course, good luck that they’ll ever hit if their at-bats are curtailed.)
But, IMO, the value of those extra games does not out-weigh the experience of those bottom 2-3 hitters getting an opportunity to play. If I feel we're not getting enough games, I can always enter another tournament, or play friendlies to make them up. I think most 12U teams play too many games as it is. More time should be spent practicing.
But that’s just me. I just think kids want and need the opportunity to play more than they need to win a few more games.