One of the two teams should be playing in a different league.
If the point of the league is to promote competition it makes sense. It won't make the kid any better playing against weak competition and it won't benefit the other players or the other team.
If the parents want they should sign the kid up for a more competitive league.
The problem with that is that the kid is in grade 6/ middle school, so there isn't a higher level of competition for him.
If this were a pee wee league, the obvious, (and best), solution would be to let him play against older opponents, which will happen next year, when he goes to Junior High. Almost without exception, the exceptionally good players in any sport dominate all regional competition in their age group, so the Orrs and the Gretzkys played Junior OHA/OHL at 14. In MLB baseball, one of the indicators of future greatness in the ability to play regularly at or before age 22.
It's good to see that the kid has a good head on his shoulders. He has his priorities in order at his age. Barring injury, he looks like he could play NCAA as a true freshman in about 7 years, but a lot can happen in that much time.