It's all from showcases. They don't give a damn the numbers you're kid is putting up in 8th grade. They don't even care much anymore what their high school stats are - they just focus on the performances and metrics in showcases and travel ball. The recruiters and scouts go to fewer and fewer high school games every year and aren't soliciting as much input from HS coaches.
Yes it is crazy they are offering that young, and I don't think they should. It's non-binding, however. That kid that hit puberty early and dominated can easily get overtaken by his peers once they catch up physically.
Anyway, thinking about getting your son recruited before middle school is a waste of time. I don't remember the number, but the percentage of kids that play after Little League (about age 12) is about 10%. So 90% of those kids that had baseball dreams are gone after 12. It's even more by the time they get to high school. They lose interest, play another sport, or just find out that they're not good enough to keep advancing in the sport.
If your kid is still going strong by his junior year, then get him showcase exposure and start the process. The chances of him playing college ball are minute, so just enjoy the process and the time spent watching and coaching him.
This right here...its all non binding.
Technically colleges are not allowed to contact a player until sometime in June, I believe, after his/her sophomore year. That does not mean that a player cannot contact a coach, vie email, text, phone, etc. Players can also attend as many showcases, camps, etc., that said coaches are attending as well, and communicate with these coaches.
The offer is no different than an offer for an upper-class player, nothing but an offer. However as long as there is an offer, that player can sign a LOI when the time comes. Up until that point any offer can be pulled. Most of these offers are just to play, until scholarship numbers are determined. Usually jr or sr. barely 1% of all athletes get full athletic rides, and for men, its ONLY in D1 Football & D1 basketball. All other athletic scholarships can be combined with other scholarships (academic, federal, etc.). Also, these offers only last from one year to the next, and technically have to be renewed, or your offer expires.
But basically when you see all these kids committing early, its not a smart thing to do, but more about bragging.