It is what it is - a single game to spotlight SOME of the state's best middle school football players. First off, college scouts aren't going to be sold on a kid who stands out on an 8th grade level. A kid may get noticed, may be put on a list to watch and see - but I seriously doubt this game is going to make or break an 8th grader's college career. If your child was selected, congratulations. Go play, have fun and represent. If your child wasn't selected, or didn't know about the tryouts, big deal. He will still go play in high school, and if he is good enough will pave his way from there. If the kid has talent, he will get noticed - regardless of whether or not he played in the "All-Star" game in 8th grade. The players chosen were the best of the kids who tried out. Period. No doubt that those kids are standouts. No doubt that there are players who are as good OR BETTER than the ones on the team but for whatever reason they didn't try out - didn't know about tryouts, committed to another sports team (baseball, basketball, track) or had another obligation during that time (vacations, camps) etc.
This is similar to exposure tournaments in basketball. Nowadays, kids have to be marketed to some degree to attract the attention of college scouts. This is just another vehicle to get noticed. Don't knock the organizers for providing an opportunity for these boys to showcase their talents, and don't be offended if your kid isn't on the team. It doesn't mean that your kid isn't good enough - (because, at the end of the day, don't we all think our kid is the best?) And remember, sports, like everything else, is political. The sooner you realize that and learn to navigate through it, the better advocate you will be for your kid. If they've got it, they've got it - the rest will take care of itself.