I completely agree with what you're saying here. I posted recently in the Scottish forums about this issue as we only have 30 teams.
I think it would make the game much more competitive if we were to merge Ireland, Scotland, England and Wales (which only has 7 active teams) in to one big league but keep our own separate National Teams. this would give us around 400-500 active teams.
Plus I would love a pop at the English teams, ignite a little bit of rivalry. Scotland is now ranked higher than England in both full NT and U21 NT just now as well. This has no relevance, just thought I would have a wee dig :).