It's not a problem...in that anyone can move the players around. The current system just makes it more difficult.
Al, if you do it from the bottom up....let's say you start from the bottom up. Okay, so you look at Lo-A and you need to add 4 players so you look at your roster and find the 4 that you think will fit there, but what you're essentially doing is grading everyone in the organization because if you move the guy to Lo-A that means you've determined that there is someone better suited at Hi A, AA and AAA. Yes, you can then promote the guy again if needed to Hi A as you get to that level, but that leaves the spot open at Lo A and you have to do it all over again.
Once again...it's not impossible. it's just more difficult that it has to be.
I do a lot of minor league FA signings...both during the re-sign period and after, but as I stated earlier re-signing AAA and AA guys isn't always possible because players that are without a doubt non-BL material will still ask for way more than any sane owner would pay.
This season I had 11 players retire from my minors. Four were over the age of 28 the rest were under the age of 25.
I had 22 leave as FAs...Four were from my BL team and that was expected the rest were from my AAA and AA teams and while most of them had never played a game in the BLs they are all considered ML by WIS when you run the report and they appear in the ML FA list.