I agree somewhat here.
I think it's more a combination of things that result in the youth system deficiencies. I think that with the amount of money being pumped into the game, there is less patience in developing the talent or more focus on the results and how well you do over in a season, for the fans - for the revenue. There is pressure to go out and buy the finished article than wait, 3-4 years to get a decent squad of youth team players coming through into the first team - it is definitely the case with the top teams in England.
Then with the smaller teams, you have the bigger clubs from all over buying their talent - Smalling from Fulham to Man Utd is one high profile example as was Ramsey a year before. It's getting harder and harder to compete financially, so the smaller teams have no option but to sell their best talent, who go to bigger clubs and warm the bench for 2-3 seasons cos of the established players holding down the positions, it's a vicious cycle and the game is definately suffering in most quarters.