I just took over a team and realized that it is in worse shape than initially thought.  Not only is the team for this year screwed, but the previous owner(s) have promoted very good prospects way to early, leaving them way short of their numbers.  I have kids that are 22 rushed to the majors, 18 pts from their projection.  So my question is, if I demote these kids back to the level they should be at, will it be worth it???  Will the demotion penalty be worth what they will gain by moving to the right level?

IMO, if they're good enough to play in the majors, leave them.  If not, send them down.  They'll still progress in the majors if they're playing.

If a 1-3 point ratings hit in a couple of categories ruins these players, I'd dispute "very good prospects".