I agree with you Michele, it really does depend on what your priorities are as a family. And I've heard that competitive gymnastics is also a huge commitment - interesting that you found cheer to be LESS demanding.

I don't have a problem with the cheer itself as a sport and was happy to have my daughter participate except that we just could not realistically sustain that level of commitment to a single extracurricular activity. But I could understand that a family could get very involved in this, just like some families enjoy, say, season tickets to sports teams that are also really expensive while some people don't think that's worth it.
As for advance research, I actually did review all the materials on their website and attended an open house before the try-outs. I read the registration packet very carefully (I'm a lawyer, after all). I asked all the questions that I could think of, but honestly I didn't even know what to ask because some of the expectations were things that never ever would have occurred to me (like not being able to go somewhere as a family on Spring Break, which was really the deal-breaker for me in the end since we always travel to visit our families on breaks). I don't think they were trying to trick us or anything, but it would have been helpful to have their parents' manual (or similarly detailed information) available at the open house rather than a few weeks after practice began because I think it would have saved a lot of unnecessary heartache for us.
I don't think the program is a scam. They have numerous paid coaches training these kids for 6 hours a week and I know there are kids who want to compete at this elite level. When I talked to the owner about withdrawing my daughter, he explained that they actually did try having less "intense" teams for a while but they just never saw enough sustained interest in that to continue it. The kids always wanted to either move onto something else or move onto the competition teams.
Thank you so much for all your thoughts, everybody. This has been a very interesting discussion and I'm glad people weighed in with different perspectives, actually, because it helped me clarify my own feelings about this.