What a load of nonsense. If a team is no longer good enough for the Premiership then they should be relegated, just like in any other league. Conversely, if an up and coming team is good enough for the Premiership, they should not be closed off. Talk about trying to protect their investment. If one of those clubs gets relegated this year I'll guarantee the owner won't be voting for it next year.
It won't work, as the football league would strongly oppose it, if there's no longer an incentive to play in the division, all the money would leave. Also, it would be ridiculous if teams like Birmingham, West Ham, Southampton etc, wouldn't get a chance to get promoted back to the premier league just because they shut the league, it would ruin their proud history. As Ron said, teams are relegated for a reason, to get rid of the teams who don't cut it. It also freshens up the league a bit every season, its always nice to see a team like swansea or blackpool give it a go. Stupid idea that I hope never gets put in place.