Is Competitiveness Gone from Kid's Sports?

My son competed in his first Kid’s Triathlon this past weekend. As a parent I wanted this to be a positive experience for him. For my son’s age group, this kids triathlon was a 100yd swim, 1 mile bike, and a half mile run. The older age groups went to a 200 yard swim then to a 300 yard swim. The swim seemed long to me and they allowed the younger kids to use kick boards to help them. All the older kids were expected to swim their distance. As the older kids swam the pool, I noticed a young girl halfway through the swim at the end of a lane crying. My heart went out to her because I’ve been in that situation, wondering if I could finish, willing myself to finish. Some volunteers talked to her as she cried, then let her swim under two ropes to swim one less lap. I lost track of her as my son jumped in the pool.

He finished in 18 minutes and 49 seconds.
“Well, what did you think?”
“It was great. I had fun. The swim was really hard though.”
“Are you glad you did it?”
“Yeah, I feel really good.”

I thought again about that girl. Were the volunteers right to let her swim less than others in her age group? She recorded a shorter swim time but didn’t swim the distance. Will that bother those that swam the entire length of the pool and finished after her?

I know that this is just a kid’s triathlon, a more casual race. Was this the right thing to do?