Ultimately the only way this hostile takeover of football can win is if the fans are weak enough to support it.
I don't think that's true at all. The outrage toward this is palpable in England, and presumably elsewhere too. It would be damaging enough not to stand in the way of this, but to claim you would and then betray working class football supporters? I don't see this government risking that, even if there were economic benefits to this move for the UK - which there likely won't be.
Right but the proposal at face value, is maintaining the infrastructures of all domestic football systems. The clubs would still be competing in the local leagues. They have not made a proposal that they are leaving the Premierleague. It is the threat from Uefa of that.
It is more about backing the financial interests of the Premier League. And sure it helps to calm the national fan
outrage, which is in part human nature for venturing against conformity. Let's be honest, this is a proposal related to European Football and not British football. It is above the head of the local leagues and more of a Coup d'etat on the Uefa Champions League.
The Champions League will still be there with prize money for local leagues. The ESL clubs will also be in the local leagues. The real issue is basically that the G-12 have surpassed the benefit of staying in the current CL.
Perhaps the British government could contest other matters more pertaining to international interest in football such as boycotting the Qatar world cup. For now it is, to me, more about needing the assurances that their domestic products are not compromised financially. Which there currently doesn't seem to be a suggestion to, as CL TV rights sales and sponsorships have neither negatively nor positively correlated with the Premier Leagues.
In a way it might somehow have a benefit for the local leagues. The non ESL clubs versus the local clubs will have extra interest and fanfare. An end of season ESL winner vs. CL winner game.