I agree with your basic premise that the org doesn't know what the hell it's doing with kids and that is a long term handicap.
It's what you get from a doomsday cult that refuses to admit it's a religion.
If they had any common sense they would also get more involved in the community. Ever heard of charity? How about a food drive or something? How about taking up some money for that family across town that lost their home in a fire?
They are too preoccupied with trying to be God's Paul Revere to figure out that they're just another church and their members actually want/need that.