Of course! When the activity no longer meets the kid's needs and goals, things need to change. I always present her with options at the time they exist -- for example, when she got "rejected" for the school competition squad, our options included going back to the old gymnastics team, taking dance classes, or joining the all-star gym. There were a few other options too, but doing nothing wasn't an option, because we'd both go nuts with all that time and hyper energy.
I have no agenda for her. I'm not a stage mom. I just want her to feel competent - that's what it's all about.
And to use a gift you're given - that's important too. One thing I do require is that if either kid signs up for a sport or other activity, he or she is not allowed to quit halfway through or give it less than 100%. Because your teammates, whether it's gymnastics, cheer, baseball, wrestling or whatever, are also giving it their all and deserve yours too..
It also teaches good sportsmanship. One thing I wanted to add -- my daughter asked me to bring her back for the 2nd session at today's competition so she could support her school's squad -- the PeeWees she knew from last year (5th and 6th grade performed together) and even the competition squad she didn't get selected for. After all, it is still her school. I thought that showed an amazing amount of grace and maturity. To go up to the girls who did get selected and say "you did great!" Just wow.
A scholarship someday might be nice, though!