I do take your point regarding the playing side and I imagine that is why there is a 2 or 3 year freeze on relegation from the league. For sure you look at Swalwell in the TSL and they will probably have a better side than most in the Prem2 when it kicks off but if they dont want to play ball then you can't force them to join I suppose!
I suppose all clubs have 2 ways of approaching cricket looking to be successful. The money route which undoubtedly will be that taken by some of the clubs on there, and the development route whereby you look to develop good young players getting them into the 1st team where possible.
I agree that having a junior set up does not guarantee getting players through, it is more about the quality of that set up. Clubs need good coaches, good facilities, and good parents to help get the best out of the kids and develop them into good 1st team players. Most of the clubs with good junior sections have had them a good few years now, so hopefully the next 2-3 years will see the fruition of the good work and get some decent players coming through.
Don't get me wrong you will always get the likes of Swalwell, Shotley Bridge and Kimblesworth pulling good sides together in the supposed lower level leagues due to the money they spend. This is however their perogative. you would hope they show some ambition and progress to the next level, making Premier League 2 as strong as possible but if they are happy to keep trampling over the poorer sides what can you do!