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And many of the best Americans play with foreign club teams until the National Team comes calling again or they out age their usefulness in those top leagues.
Another issue (source: Alexi Lalas some years ago) is that soccer is coached in the United States from an early age. The 5 - 10 years olds mentioned above run drills and "learn" soccer technique. Many of the overseas players come from poverty stricken areas and they just play. Instead of learning technique, they develop instinct.
I agree with this - sort of. What the case has been, and it actively being worked on now, is that the vast majority of youth coaches are volunteer parents that know very little to nothing about the sport. Educating all those volunteers, is what is being addressed by USA soccer now in a uniform way now.
The biggest difference between the best foreign players and the best U.S. players is in ball skills. You take the average kid in the city going to the park to play ball, and they are bouncing a basketball all the way down the street, over the curbs, over the uneven surfaces, from their house to the park. You drive down the west side highway any day there isn't snow and you'll see them. In cities around the world, those kids are dribbling soccer balls down their streets, over the uneven surfaces and to the playing field, or parking lot, wherever it is.
Second generation or beyond American players, will always have that disadvantage in the world level.