I think there could be a difference with how the Naval Academy views it as compared to how MOC interviewer or committee members perceive it. I agree with the DesertCaliMom above who indicated that the questions may be asked as to "why" they did not continue during their senior year. If the answer is: "I didn't get along with the coach," "There are faster swimmers than me," "I already checked the block of getting my varsity letter," "I just didn't feel like swimming anymore" then I think this could be seen as a negative. However, if he/she has examples of how he took on different leadership roles or experiences, that he has a passion for, instead, then I don't think it would be seen as a negative. However, there could be committee members who would truly view it as "quitting" the team and letting other teammates, or the school down for what could be perceived as a selfish reason, if they don't believe you have justified it.