My final verdict on this inconclusive. There is not a large enough data set to 100% say that the main reason players are leaving the sport are because it is to serious. If there was an overwhelming amount of people leaving the sport for that reason then Yes, it should be something for the association to consider. But if its not and they decide to do it then they may not retain the players are losing and could even drive others away. In addition to this the association that is mostly run by volunteers and this wole process may waste an immense amount of time trying to set it all up only for it not to work.
The only way to find out if players are leaving because it is to competitive is to ask them. The only way to do that is to survey them, and we all know how much people love to do surveys. The surveys would have to be conducted at the start of the new season, it could be attached to a prompt to play football again. If the individual says that they are not playing, then it could supply a drop down menu full of all the options that people have previously supplied for not playing. Non-returning players could also supply more than just one reason for not playing as that could potentially be the case.
All in all I think that it could have a benefit on local football as long as it is addresses the issue. If the association did not carry out the proper research and still went forward with the idea then I think it could have the opposite effect. Therefore increasing the dropout rate, decreasing new players and being a massive waste of time.