Depends on the kids birth year. My son is an 2005 so town is a better option (he plays both town & tier 1 white) because ever town game he plays against kids who are 2004 birth years. Now next year I don't think it will be better when he plays against 2006.
For my kid, yes. Absolutely. The kids on his club team actually show up to practice. They're serious about hockey and want to get better. When we were in town it was a joke. It was a recreational activity and his teammates showed up when they didn't have a basketball game, ski trip, birthday party, or whatever else to do.
I'll take the extra cost to have my kid play with teammates and coaches who actually care and want to be there.
Finally, someone who gets it! These low level select programs that everyone bashes is great for kids that are serious and want to get better. My son started in the EMHL and now plays in T1 Black....select is much better than town at any level!
You're lumping "town" into a single option when there is usually a significant difference between Town A and the lower level teams. You wouldn't compare the EHF to some other league without distinguishing between EHF Elite and Tier 1 Black/White. Some of the Town A teams are pretty competitive, but usually because they are filled with club players.
It depends on the town - many town programs are awful. Also, in town hockey, the teams are comprised of players from 2 years - not the one year they do in clubs. So, if your kid is a first year Squirt playing on the top town Squirt team, that's likely better than a lot of club teams that would only have kids his age.
Bottom line, every program is different - generalizations don't really work.