For the clubs not owned by Oligarchs with billions of dollars to piss away for fun, I completely understand the appeal and need for the ESL.
Where I put blame on FIFA and UEFA is that they allowed for and fostered a system that was inherently unsustainable. We tend to think that there are only a couple of realistic options, where it is either a pure meritocracy system built on the strictest of financial controls, or a purely capitalist system where the open market will weed out the weak from strong. I think that they wanted the outward appearance of a meritocracy but in all forms of action and policy it has been the opposite. That's why I kind of found the protests and comments about the ESL the first time somewhat funny. Everyone complained that the ESL was rotten because it took away the competition and fair play built into the existing system, but for all intents and purposes that was largely dead anyways.
We all know FFP was a joke now, the new proposed system arguably looks worse in most respects, but none of that mattered while revenues were growing for the sport. They didn't care who started buying clubs as long as there was money to be invested, they didn't really make much of an impact of larger clubs buying up talent to reduce competition, they looked the other way when clubs bent and went around rules leading to financial doping, they failed to close loopholes to allow all of these things to happen, and created a system where it's so bad that even the bad actors find themselves screwed by the monster they helped to create.