Playing time at the 8-9 yr old level

Hopefully someone out there has a solution to my situation. My son is 8yrs old and plays on the 8-9yr old team (he will be 9 in July). He is an average player, he throws good, can catch, and he is a so-so hitter. The league he plays in is an "in-house" league, so no one gets cut, minimal competition, and everyone is supposed to play (I assumed equally). The coach has a select number of players who are very good. These players play the entire game. Last night the team had 11 players (2 subs each inning), but my son had to sit out 3 innings of a 6 inning game. The good players also play on the 'travel' team, so they are getting playing time there in what is supposed to be a competitive environment. My son's coach is also on the board of the little league. During the 6th inning of last nights game, my wife went up to coach to ask why our son had to sit out again. 1st excuse: Did he sit out 3 times, I didn't know that. 2nd excuse: there are 2 levels of player (good and bad). It's not supposed to be competitive but it is. 3rd excuse: I asked your son if he's afraid of the ball and he said "a little". So I guess that means he's not playing because he's afraid of the ball a little (who isn't). He is a little afraid while batting, but not in the field. How should I handle this from this point on? My son just wants to play baseball and with his level of ability, I thought the in-house league is where he would get playing time. Any help or advice would be greatly appreciated. Sorry for the long-winded message, but I wanted to explain the whole story.