In the USFSA, there are two reasons why the competitive standards and elements are higher:
. The skaters are demonstrating mastery of the elements, not just the basic passing standard.
. Most skaters compete at one level and move up after the competitive season is over, so their competition program often becomes their test program for the next level.
In ISI and the USFSA Basic Skills events, there are restrictions on doing higher-level elements. Including a higher-level element results in a penalty of sorts. In the USFSA standard and adult tracks, there are some restrictions on which higher-level moves are allowed. You really have to read the competition announcements to make sure you enter the correct event for your planned program.
There are other options for skaters who aren't in a position to compete in Pre-Prel against someone with an axel. There are beginner and "limited" events as well as Test Track events. Test Track was intended for skaters who are skating at the test level, but not much above it,in terms of elements and skill.
I watched some Basic Skills events a few weeks ago and saw that the bar has been set higher than just passing standard. The Free Skate events had programs and skating that demonstrated real mastery of not only the elements, but basic skating and performing. The skaters that placed well had a great deal of power and speed. I didn't know any of the skaters, so I'm not making any accusations of sandbagging, just sharing my observations.
I think that sandbagging is used too often as an excuse for not doing well. Sometimes, skaters denigrate competitors by accusing them of sandbagging when they were really just outskated. Other times, it's justified, but you really have to know the skater to be certain which is which. Better to just forget it and focus on your own skating.