Attending my kid's practice sessions has provided me with some of the fondest memories of my life. I attended many, I wish now, I'd attended even more. It allowed me to relate to him in ways that I would not otherwise had. It gave me an opportunity to brag on him when deserved, and to encourage him when he got down. I wouldn't take a jillion for that.
Plus, it also gave me the opportunity to get to know the coaches and other parents. Some, who are now friends for life. In my opinion, coaches appreciate parents who take an interest in their own kid and the program they're participating in. The parent can look for ways to support and contribute to the team, and encourage other parents to as well.
As far as parents, or anyone else, attending the wrestle-offs, that should not be allowed. The best way is for the two competitors to square off with only the coaches in attendance.
All Saints makes a good point about giving the kid his space and time and allowing him the independence to mature on his own. Although, that time will come soon enough. Parenting does not come with a manual, so deciding when to back off is a real challenge. Kids feel secure when they know their interests are shared and supported.