Here is my opinion about kids losing weight. I have had the same opinion for the past 30 years of coaching, and it has yet to prove me wrong. Also, I have annually (NOT ONCE IN A WHILE) been able to produce at least two or more national champions out of my club in the kids age groups from those who I coach.
My basic philosophy is never loose weight at the beginning of the season. Kids grow. If you struggle but still remain competitive at the beginning against bigger wrestlers, you will eventually adjust to their size and strength. Once this happens, you will have a much easier time, and will allow your body to "grow" into its end of season weight.
There is a very strong possibility that those who cut weight now won't be able to make it at the end of the season. Even if they do, so what. Local matches don't mean much, and first year age-group wrestlers should expect to have a little harder time against older wrestlers. The only place it really counts (at least for us) is at the national level.
If my kids are within 2 lbs for a national tournament, I might let them go down. Anything else and they go the next weight.