Slightly off-topic but I don't see the CL squad rules as "ridiculously strict" at all
I find the EPL squad rules "ridiculously strict" (let alone the UCL ones) because they don't allow clubs like our own to have 2 WC players* in every position on the field. Likewise having the UCL squad rules be different to the EPL squad rules is firstly not needed and only makes the task harder for the clubs in question.
*Which is the bare minimum needed to reach the goals the owners have set, although I think you need 3 WC players (or close to) per position to be able to win Doubles/Trebles/Quadruples on a regular basis, especially when the going gets tough.
they're intended to encourage clubs to develop players through their youth systems.
Except they don't to a great degree, because from the way I see it the problem is not that "clubs are not producing enough players from the academy"* but rather actually getting them to play for the first team (if they are talented enough). Now one might say "well why not just gamble by actually playing them", except for the major clubs in the EPL, you cannot afford to put anything other than your proven strongest XI (based on the resources you have and the other games you have) for the vast majority of games. The recent game against Everton is a good example of this.
Likewise for the young players themselves I feel it is unreasonable (and harmful for their development) to immediately place such players on the first teams of big clubs such as ours, simply because no matter how talented the player is, you cannot expect them to have a perfect debut in such a high expectations/pressure environment, rather you need to give them a space where they do not have such high expectations/pressure and are allowed to thrive and build up their experience in senior football.
So if they want to see WC British Players emerge and have them play in the EPL, they need to look less towards squad limits and quotas and more towards the likes of Tottenham Hotspur** and Barcelona (and their youth development policies), in other words they either need to allow official B-Teams to play in the Football League or allow unofficial partnerships to be established between Premier League/Football League clubs when it comes to youth development.
*One only has to look at the academies of major clubs such as ours and the recent performances of the England Youth Teams.
**The former is a club which plays in the EPL and has a high but realistic level of ambition (in other words the best place for a youth player to thrive), the latter has a B team which is best placed to provide such an enviroment.
You seem to be implying that the rules should be eased just to help clubs like us who can afford a more expensive squad.
I am, but it is not just this club. Rather I am talking about all the major clubs in the Premier League (i.e. the ones who have a realistic chance at winning the EPL and/or the Domestic Cups and/or something in Europe) and even smaller clubs who want to both try and stay in the Premier League and go on good cup wins (right up to winning it)*.
Likewise such a relaxation would also make it easier for English Clubs to win European Trophies.
*Rather than having to pick between one or the other.