When a doctor determines high levels of (bad) cholesterol, the first course of action is to recommend dietary changes to lower the cholesterol. Only when that fails (usually due to the unwillingness of the patient, and in this case probably the patient's parents) that is when statins are advised. I don't know if I agree every child needs to be tested either, but considering how many kids eat most of their meals out of paper bags and pizza boxes it might not be outright misguided.
"I have heard there are troubles of more than one kind. Some come from ahead and some come from behind. But I've bought a big bat. I'm all ready you see. Now my troubles are going to have troubles with me!" - Dr. Seuss