Better team scout doesn't provide better academy youth's reports. It makes other team player's reports cheaper and more precise.
My current scout is level 4 (Good), get a player report takes 10 energy points and i get precise reports on every single player up to LA10 (if a player is LA11, it says his LA is between 11 and 12).
There's an argentinian manager who already maxed his scout to level 5, each player report takes 5 energy points and player report are close to perfect: he scouted a high CA player in market, his scout missed only 1 skill in 1 point.
Also, scout level 5 gives you the improvement predictions you have with your own players (for instance, it can say that a 3/8/5 will be CA5 next season, CA8 in the season that comes next and so on), it's pretty useful IMO.
EDIT:
Those are the youth i still have in my academy, as you can see, despite my scout is level 4, their report is not acurate at all:
