Just like holding an addict's hand, which fails every time, giving every kid a trophy cripples them. It stifles individuality, suffocates creativity, breeds dependency, encourages laziness, and relegates each and every child to the ash heap of mediocrity. If children are never allowed to fail, they are simultaneously never allowed to succeed.
Furthermore, if you tell kids they can do something they really can't do, they will set unreasonable expectations for themselves and be perpetually disappointed and discouraged. Giving everyone a trophy ends up having the precise opposite effect that you intend it to have. It is also a degenerate philosophy at its core, similar to the entitlement / victim mentality that makes addicts and alcoholics addicts and alcoholics.
The most successful people in the world achieved great things by taking risks, failing, getting back up, and jumping in once again with both feet. They courageously leaped into the great unknown, avoiding temptations of the status quo to settle for the illusion of job security. Even more important is having the freedom to make our own choices and take risks that others choose not to take out of fear and cowardice.
The 'every kid gets a trophy' mentality, like the Common Core approach we see in state-sponsored education, robs children of the choice, and therefore the opportunity, to distinguish themselves among others, think independently and creatively, reach their full potential, and become who they are. It teaches kids to caste themselves among part of the collective. Don't fall for it.
This sort of social programming will eventually destroy and enslave the authentic mind, despite the fact that our greatness was realized through individual freedom, not servitude to the state. Albert Einstein was a non-conformist and he changed the way we see all of creation. Perhaps we should think twice before we push our children back into line and allow their originality and uniqueness to fade away as they join the masses of zombies, robots and sheep.
The same thing is occurring in other extensions of our social fabric such as academics and economics, but hey, no worries, if you want to give everything you have to a corrupt government, indebt your children and brainwash yourself at a ridiculously overpriced liberal arts college for 200k without the slightest hope of employment in some useless field, be my guest...
...or we could try being ourselves, developing an actual skill set and building something of our own. Get outside of the box, the miserable status quo, and make yourself known. Don't let yet another pompous intellectual elitist tell you what is wrong and right, how to live your life, and what we must do 'collectively'. Listen to your heart, your gut, your soul. You know deep down who you are and what is right and true.
Oh, and by the way, the kids who lost the soccer game all know the trophy is bullshit, so don't insult them. If you hold a child's hand too much, when you let go, they will fall right back down, incapable of doing anything on their own. And if, like the powers that be, that's what you want, shame on you.