One of the many issues you have is that an increasing number of players moving away from the game creates an imbalance in abilities. Yes, you can always condense leagues down into certain divisions, but how long do you go for before those regulars end up playing in divisions of 4 or 6 teams, or less?
The more players you have, the more diverse the abilities. People will move away from the game if they are playing at the wrong levels. Shorter formats at least get people playing the game and then potentially moving back into longer forms of cricket. Example; I'm managing a Last Man Stands league this season and already there are players who've come back into the game now saying they make look for a weekend club as they are loving playing again. On the flip side, I know a guy who plays regional cricket who is thinking of giving up because he travels up to 3 hours for a game on a Saturday that doesn't start until 2pm. Ends up getting home at nearly 11pm. The leagues won't change to earlier times for a multitude of reasons, but basically evolution happens quicker than change on league committees...
The point is, there are various means of getting more people back into the game - I was one of them in 2006 post-2005 ashes. Speaking a national member of staff for the RFU yesterday. They insist on keeping the world cup and six nations free-to-air and are seeing participation rise overall. Although TV isn't the sole reason for this, its a significant factor. The ECB Development staff can't affect what the suits on the committee do in terms of pricing, structure and TV. But they can try to make the most informed decisions possible by asking those that count.