I absolutely agree with Wolf. Most kids who play basketball at camps and yeshivos don’t do it to “be like Mike” or go to the NBA. They do it because it’s a fun activity to do with friends. It’s a healthy outlet. It’s so much better than a lot of other things a kid might do on his/her free time. So, I don’t view it as a problem. In fact, I view it as a blessing. I thank G-d that kids find fun in playing sports.
About hoods, I don’t see why it should be considered a problem, but if a school has that rule, fine.