I feel that there are just far too many teams in these competitions. If both competitions are to be kept, then The Champions League should be for the League Champions and the FA Cup winners: this would also give the FA Cup a much-needed boost. And the Europa Cup could be limited to the runners up and the League Cup winners. it's just down-grading both competitions by having so many teams competing in them.
It's more good football. Audiences for all the matches in the CL (even with all the current teams) is absolutely immense, so there's still ample money to be made from them. Cutting down the teams to just the league champions would completely slash CL revenue and make the tournament incredibly short.
The Europa League, on the other hand, probably does suffer from this slightly. They're putting teams in that tournament for any old reason now.
