a good youth hockey coach needs to have played competitive hockey but not at the highest levels. Its more important to be an effective educator and communicator. At the squirt and peewee level, it's also important for the coach to be able to demonstrate the drills/ skills he expects from his players. I've seen too many coaches who do not correct fundamental skating, stick handling issues because they, themselves are simply not aware and don't recognize it.
my son had coaches like that at the breakers and the practices were painful to watch. They also got rid of the guy who ran the skills and the skills are terrible now