I am not completely against scholastic tournaments. When a kid just starts out with chess, s/he needs such tournaments. They can be finished in one afternoon or one day. There are trophies, which provide great motivation for beginners. I am against scholastic tournaments because I have seen numerous examples that students can't grow out of scholastic tournaments. They have wasted their talents and totally destroyed their potential. It's a very sad reality to watch.
Comparing to adult tournaments, scholastic tournaments usually are of shorter time control, such as 30 minutes. Players are not as serious as those in adult tournaments. Most importantly, most strong scholastic players are no longer playing scholastic tournaments. Where do they go? Adult tournaments. As we all know, if you want to grow in chess, you have to play against stronger players. That's why those stuck in scholastic tournaments can never grow up.
Therefore, after a kid has played in scholastic tournaments for a year or two years, s/he should consider to wean from scholastic tournaments or s/he can't become an adult.