It might just be the lack of competition/possibillities that is the main challenge for BB right now. I am also in favor of a full merge, and at least the micro/semi-micro nations.
In the JimboJambos example above he will be promoted and have a go in the above league every season, until he manages to stay there. So he will get first draft pick every other season. Micro nations don't. It is interesting to hear that the income for div V is so bad. Perhaps an extra set of measures, implemented at the same time, in combination could help, instead of trying out one idea at a time:
a) Merge
b) Limiting attendance even more, throughout the divisions. To make a more even playground for new teams. You could have a big arena, but you are not able to fill it until you are in the upper divisions. So teams relegating will have to adapt quickly, until they are able to promote again. Next season when the next teams relegates, they to will have to adapt. This will force teams to sell and buy players more often.
c) Give a much bigger promotion bonus, so the upper divisions will have to struggle more to keep the newly promoted teams down, thereby spending more of their money. This could help in taking a bite of the account of super rich teams, and also make the promotion/relegation teams more diverse. The teams promoting will have a chance to stay in division, instead of almost automatic relegation as it is now.