I have not pretended to be an expert at TKD - or to even have any knowledge on the sport... I stated an opinion, nothing elses. My personal exposure to TKD may not have been much - but it was very negative in each case that saw the parents paying for belt promotions, the kids didn't deserve in the first place. Ridiculous what they charge per each belt promo, and every 3 months, no wonder kids make blackbelt in about 3 years. Kinda like robbing them, but without a weapon. In fact - they call it "Tae Kwon Don't" and "Take Ones Dough" in my area. I'm not making that up.
That stuff is a huge issue. It is largest in taekwondo because taekwondo is the most popular MA. The popularity of taekwondo has also made it more pervasive in the art, though all that it takes for any art to suffer this nonsense is for it to be popular enough for entrepreneurs to target.
From what I have read, both from former and current ATA members and from others who have taken the time to learn about the ATA first hand, the ATA specializes in providing a fairly pricy after school and family activity geared towards suburban kids. I won't comment on the content of the curriculum because I have never practiced that style of taekwondo.
The phenomenon is not limited to taekwondo, nor is it limited to the ATA within taekwondo, though ATA taekwondo is the only one that
seems to be set up this way at an organiztional level.
The issue that you are describing is often called McDojoism; a ridiculous level of commercialization that is established in order for the school to turn a greater profit.
Essentially, the basis of the model is that 99% of MA students quit either before or shortly after they get a black piece of cloth. Since you won't have the students much longer than a year or two, you charge on the high side for tuition, charge more for colored belt promotions, add more colored belts, and charge a whopper for the black belt test. Special clubs, such as black belt clubs and masters clubs, are an extra cost and frequently required for training beyond the bare minimum. Demo teams can sometimes be an extra cost as well: students must purchase a dobok/gi for the team. Often, an overpriced pro shop is part of the deal, with students required to buy all of their gear from the school.
Such schools offer all kinds of extra programs, such as XMA, MMA, Krav Maga, and all kinds of weapon curriculums in an effort to be all things to all people and to get more out of the students who do stay past black belt. Often though, such programs are fluff with instructors who are unqualified to teach them. So far, almost every sword program that I have seen added onto an unarmed KMA has been taught by unqualified people in the schools that I have visited (check out some of the KSA threads).
Students often must sign contracts for a year or more in order to insure that they cannot quit before that black piece of cloth is tied around their waist.
Because no student is failed in colored belt testings, nor held back, lest they not get far enough to be hit with a black belt test and its associated fee, the quality of the students suffers overall.
Because the emphasis is on "rah rah attaboy!" and on essentially graduating the students from the school after (usually) 24 months, the amount of correction and attention to detail is usually very low.
In order to avoid law suits and angry parents, sparring is usually made light to no contact while still requiring a ton of pads and in competitions, everyone gets a trophy.
Does this sound like what you have been seeing?
If so, then I am with you completely: such schools are worthless for anything but cheap daycare.
There are several schools like that around here. Surprisingly, most of them are not taekwondo.
Daniel