The teams that get hurt are those up and coming teams and newly promoted ones that need to improve their rosters, but are unable to since they can't afford high skilled players.
It would help if those high division teams / long term managers viewed the Div III and IV teams as anything more than farm teams to do their out-of-position training for them.
Right now the training system is such that those newer/lower division owners are stuck in yo-yo land bouncing back and forth between III and IV because:
1) They can't afford to upgrade their rosters through FA's, and
2) They can't build players fast enough to compete with those long established teams.
Not to mention the fact that a lot of this focus on removing money from the game seems a lot like some people saying "I got my bankroll now we're gonna change the rules so no one else can and I can rule forever."