Do you believe that we give too many kids trophies?
No, here is the thing about participation trophies. They exist for a very specific reason: to increase participation.
I enjoy running. One of the things that happens fairly regularly in races are participation medals. The reason that they give those out is because when races have them, they see an increase in the amount of people participating and returning.
When I'm in shape, I'm a pretty good distance runner. I usually place in the top runners for my age groups in most races above a 10k. I don't need the trophy. You know who does, the overweight guy working towards his new years resolution. Participation medals give a tangible reward to people. They give them something to look forward to.
If you are good at something, everyone knows. If you are nervous or just starting out, sometimes you need reinforcement.