From what I gathered the complaint had to do with the fact that although many of us go through the pain of getting sponsors and kits and then when you look at the results of a race you see teams listed that don't exist as a USA Cycling club. Around here we get names like, "Team Beer", "I am Slow". Kind of a big joke.
On the one hand the rules as they are written are way TOO stringent. There needs to be a middle ground and honestly it just comes from verifying team registrations against the USAC Club affiliation. One of the many reasons I am sure that USAC is designing their reg system. Bike Reg does a good job, but even around here we don't seem to validate against registrered clubs.