Quite, it seems to me that it's trying to force any nipper with a modicum of talent into these new 'category' academies. Therefore it can surely only create a bigger log-jam of talent at the higher levels and result in many more kids being ruined by not having the chance of first team football at the clubs there are members of.
The only way out of this would be loaning the players out (thus defeating the object of an academy managing their progress) or setting smaller clubs up as a reserve or feeder club in a lower league. (Real Madrid Castilla for example.)
Either way, it will decimate youth development in the lower leagues. I couldn't care less that it works in our favour, it will help to destroy grass roots football in this country.