There are always 'controversies' over the team selections with USA basketball, but generally they do pretty well. The selection committee sees a lot more than any 'observers' do so I never take the 'what were they thinking' criticism too seriously. This is especially true as you get down to the last few selections to a team where specific 'emergency' considerations may come into play - how a player can fill multiple roles should fouls/injuries hit during a competition.
I did think this team had issues with team concepts, which is partly a result of short training time, but also a reflection on coaching with the team and perhaps the pre USA coaching that they have received.
But the result is also not a bad thing - that the USA youth team is being challenges is a reflection on the expansion of women's BB worldwide. They did not play all that well in any of their games, especially in the first quarters, but had romped in their first three games - that they lost one game might just be an aberration which happens in all sports - they won the second half, but had dug to deep a hole in the first.