That can't be unique to England, surely.
Germany, France, Italy, Holland and Spain each have complex and interconnected league structures.
The German league pyramid for one comprises over 2,000 divisions containing over 33,000 teams.
I've no idea how competitive it is, but in that the pyramid structure is similar to the English system, you'd have to believe it's similar in competitiveness.
The english football pyramid is genuinely something special in terms of its fan participation. As braineclipse has posted, the fan figures in england are the best when you look at the whole pyramid. and i'm pretty sure there isn't any sports league system in the world with as many pro teams/players on its books.
also from what i've heard, only germany matches england in terms of net income in the top flight (for player's salaries). but from the 2nd tier downwards, england offers the most competitive wages in football. That means that these lower leagues in england have strong revenue sources which can only be the result of dedicated fan support for these sides.
Having said that, going back to the topic, although i am generally against the "League 3 B team" structure that has been discussed, due to the potential risk to the fabric of the english football pyramid, i still think it may be possible to introduce it in some manner so that it is not a detriment to english football.
the fa have said that there is a lack of compeitive opportunities for 18-21 yr olds (of premier league sides). and therefore its hurting the national side's prospects. i'm not sure this B team structure would help much tbh. if a player is 18-21, and is only good enough to play League 1 standard football, although he may eventually reach the national team, he won't be one of the main players anyway. Wheelchair, phil jones, shaw, oxlade-chamberlain, barkley, sturridge, danny rose
if you look at the worldclass players that england have had over the past decade all of these guys were at least part of the first team sqaud in the premier league at that age (18-21). cole, ferdinand, terry, neville, beckham, scholes, lampard, gerrard, owen, rooney. and if you look at the young players now for england who look like they could be world class one day, they are also part of the first team sqaud for their clubs.
basically, i don't think B team football in the manner that it has been presented at the moment is going to change the standard of the national team much. in all honesty, i dont think the england national team needs much tweaking. they have had some exceptionally good players in recent tournaments. but perhaps have lacked a bit of team cohesion and luck (seeing as they have got knocked out on penalties every other tournament). lets not forget that in football punditry, the narrative is often created after the event. and had lampard's goal stood against germany, the momentum would've been with england and theres no reason why they couldnt have won. if that had happened, you can be sure the likes of alan hansen would've said that the young german players were naive to give up a 2 goal lead so easily, and had they had the experience and grit of previous german teams, this wouldn't have happened. the pundits would probably gone on to compare the likes of ozil, muller, khedira, neuer etc to ballack, beckenbauer, Matthäus, kahn etc and pointed out the "obvious" difference in experience and class.
the same would've applied to england had they won that game, and perhaps won a penalty shootout in their next game. pundits would've praised the team's character in getting so far. however you can clearly see the margins between these outcomes are not so big.
the england national team is fine, and not much needs to be altered imo.