For the teams that go bot without logging in, of course, the players lost are offset by an equal number of newly-created players of about the same aggregate skill.
This is so wrong, that can actually be easily proved by analysing if new teams actually tap the market or not.
Show me a team that makes a purchase without ever logging into their team, and...
Player prices being high as an adverse effect on mid-and-low level teams. Prices being low has an adverse effect on mid-and-low level teams. Two years ago, prices being low was killing the game. Now, prices being high is killing the game.
Yes and failing to understand and acknowledge the structural differences of the game back then and now will not do anybody any good. There is more than one manager who was in favour of changes to the FA market back then and is in favour of new changes to the market now. You're presenting it as a dichotomy, but it isn't so. The situation is different, it's understandable that the problems and the solutions are also different.
It's more that two entirely contradictory conditions can both be causing the game to be harder for newer/lower level teams that I disagree with. But yet without fail, whatever issue plagues the game, it's always that it disproportionately affects the lower levels, and so BB wants it that way.
On this specific issue, I tend to think that deflation leads to people valuing money over training, and so many "rational" actors to decide to tank and build up money. It also makes the non-market affected dollars more burdensome, so it costs more in terms of actual value to buy scouting points, build arena seats, pay trainer wages, higher player wages, etc. Of course, higher level teams often won't be building arena seats, training, or scouting. The gap in revenue from one level to the next is therefore much greater.
In an inflationary market, the revenue gap between divisions is lower in real terms, while training (which is much easier to do profitably at lower levels) can be much more profitable. The incentive to tank/ demote / buy a new promotion and repeat is much lower, since the cost of acquiring the replacements is higher.
But the long and short of it is that the reason inflation is better than deflation by a wide margin for newer teams is precisely that it helps erode the advantage older and higher level teams have. As long as player prices are low, replacing one set of aging veterans with another, slightly less aging set costs less in terms of a percentage of revenue - so it is easier for teams to keep on top and continue to build that economic lead. When player prices rise, it costs more to bring in the next set of players, which means that more money is flowing out of higher level teams down to the middle and lower tier teams that are building those players (though, of course, keeping some of those players for themselves too I presume). That depletes warchests build up by tanking teams, and causes other teams to start having to sacrifice the quality of their team because instead of carrying another 30k/week in wages, they may need the 500k extra to bring in their next player.
Personally, though it'll be harder for my club in the short term, I love that inflation is eroding my ability to buy a replacement player for the cost of two home games' revenue. I love seeing guys that get the game that I may play in the Cup who are in IV one season end up quickly dominating their III not because they saved up money by tanking or by daytrading, but instead by purchasing smart, training smart and improving their club as they go. I certainly prefer an environment where people can generate value by training players to one where a new team starts training and in three seasons, sells the players for almost nothing.