Baggs,
This could be the "dirty little secret" of Scouting.
It's the thing that everyone knows, or as you say, "the youth know it."
Keeping dirty little secrets is not healthy.
I frame this truth in terminology that helps others understand what's going on.
That is: Scouting Insiders and Scouting Outsiders.
The Insiders are the parent/leaders wearing Scout uniforms, attending every camping trip, going to Philmont, etc.
The Outsiders are parents who take a hands-off approach, and let their son have the character-building experiences of dealing with an Insider-run bureaucracy.
While the Insiders tend to squeal when this issue is mentioned in public, Outsiders, as you said, including the boys, know about these two divisions.
Acknowledging the division, and helping our sons navigate the issues that it raises, is a healthy and productive approach.
My book, The Unofficial Guide to Earning Eagle, lays out this reality for all to see, and provides tips to be successful.
http://www.unofficialeagleguide.com/
Thanks.
Kent