How is this insane? It was a gimmick, like Val Venis, that had short term value but no long term use.
In storyline terms, these 5 young kids could not beat 2 middle aged men after weeks and weeks.
Separating them from this lousy gimmick lets the decent ones have a chance to actually succeeds and gets the lesser talented Spirit Squad members off TV until they are ready.
It's about time this move happened.