SMJHL is a league for the first gen rookies:
Yes, I agree 100%. It should be a learning place to prepare people for the SHL.

Rookie ice time:
Active players should always be prioritized over inactive players, but I do not believe that rookies should get more ice time. It's a sim after all. When you are called up to the SHL chances are you'll be playing 3rd line minutes for quite a long time also.

350 TPE cap is to low:
The TPE cap of 350 is fine. With the 350 cap the development of your player doesn't stand still. You can think ahead and plan accordingly to the TPE you are earning. Also with the 350 cap in place it will maintain a smaller gap between newly drafted players and send downs.

Competitiveness of the SMJHL should not be the focus of the league:
Hockey is competitive and as this is a hockey sim, the sim should be competitive too. It can't be learning place where things are being spoonfed, it shouldn't be too easy. Look at it like this generation of kids is growing up. Everything is handed to them, they aren't allowed to get hurt. When they are getting older they will face the harsh world that's called maturity. When a kid in school didn't perform well, you got a good talking to by your parents. Nowadays it's the teachers fault. Let's not be like that.

Spending to long time in the SMJHL is bad:
I agree and I think this is a responsibility for the SHL GM's as well as the player itself. SHL GM's need to really consider the flow of players that they are drafting. Giving everyone equal opportunity if they are active. Let's say you have 7 picks in a SHL draft and draft 7 players, but you know that in 3-4 seasons you only have room for 4 players. Some might say a luxury problem, but I don't see it that way. I see it as a lack of insight.