I like the idea, but I don't get how it works...
They wanted to start them of in a new division between league 2 and conference, then after that to they just mix with the other leagues?
It would probably never happen but what happens when a B team gets really good? Use man city as an example, they could and probably would buy all the best kids around for extortionate prices and have a team worthy of premier league standards. They could eventually get to the top tier, could Man city B play man city?
What about the FA cup when teams are drawn vs the parent team?
It's obviously a system that works, look at Spain, I'm just no too familiar with the concept...