As far as I am concerened only league champions should be in a champions league and they should play it as a league structure, perhaps the top two playing a final similar to how rugby is decided. This would keep a high number of games and only the top sides in it. The winner coul justifiably be considered champions of Europe.
2nd-4th place sides (or close as depending on how a country performs for spaces) then enter a UEFA cup which would be higher calibre.
Probably means European football wouldnt come down as far as 6-8th place, but perhaps that would allow a new competition to evolve as well to spread some money about.
Oh and a cup winners cup would be brilliant to have back.