The Kolpaks wouldn't be playing though because as I stated only players eligable to play for England.
Dividing the best 80 odd players into 6 different squads would be better then the current method of having over 300 players fitted into 18 different squads. If you do the math, the difference between the top 10 domestic players compared to the 80th best player is closer then then the top 10 domestic players compared to the 300th.
Not only would the competition be more competitive and more beneficial but the discipline for all of the players involved would increase and character would be built, which would be needed for the rigours of International cricket in pressure circumstances. Why? Because players would be fighting and working harder for their spots instead of being handed county contracts on a silver platter. You've got to make the road to county cricket tough, if you want results.
They should compile a draft similar to the IPL, but just of players eligable to play for England, with the best 80 players being selected and going from there. Devise a new fixture system and get rid of Pro40, less of Twenty20 and focus more on First-Class & List-A cricket. The Kolpaks can go play club cricket.
Having something like 4 u/25 players in a team is a rubbish idea, because if anything... that's going to make county cricket even MORE weaker. If they aren't that good or if the captain doesn't have faith in them, then the captain will most likely underplay them during matches and the whole idea will go down as a complete waste of time. What you need to understand is that you've got to make the competition STRONGER for improvement, no weaker. Get the very best players playing against eachother. Don't leave potential players dangling in Division 2.