I'm really only interested in the premier at the moment seeing as we're not in Europe, which is why I was asking for examples of teams in the premier which followed the model you suggested. The only one I could think of was Liverpool recently under Dalglish and they spent shedloads on young English talent and he was sacked within a season.
Scrapping of the foreign players rule has led to Eng players not getting enough game time to develop. IMO that is the key to this...They get disillusioned when clubs go out and get 5 youngsters and 2 first teamers from around Europe.