There's absolutely that point for almost every player (and parent). You look at the elite NHL prospects like Jack Hughes and how hard they work and have been working for years to get to where they are, and you see they're fully invested and want nothing more. But even at that level, elite junior players and first-round NHL picks, you get some that coaches are never happy with because despite all their talent they won't make it because they don't work hard enough.
Even at the top level it's an incredible commitment and anything but easy. So when you're about to make the decision of playing Jr. A or not when you're a fringe player, that commitment becomes even more difficult. Where are you going in life? And at that point, it absolutely makes sense to say this is it, and just play at a lower level while going to university and starting a "normal life."
My friend's son played in the WHL, was an early 2nd-round NHL pick, got a few games but never managed to stick around, and he's now in his late 20s and playing in a subpar Euro league. He just wants to play hockey at the highest level he possibly can, and there's no other option for him because he loves it so much and is so invested in it. If that's the case, awesome. Go do it. But anything less than that, can't blame a kid for saying no to competitive hockey and stepping down a level.