The idea is more that you let the opposition have the wings and then you rely on Ramos, Pepe and Varane's aerial ability to clear crosses and use the 3 center mids to hang around the top of the box and stop any cutbacks or shots. I'd agree that against players like Sterling, Neymar, Messi etc. it would be dangerous to let them have all that space, but against a team like Atletico I think it might be worth a shot. They could also try something like this
--------Ronaldo------------Benzema-------------Bale------------
------------Rodriguez--------Kroos-----------Modric-------------
-----Coentrao---------Pepe-----------Ramos--------Carvajal----
--------------------------------Iker---------------------------------
Barca-esque 4-3-3, with Kroos functioning like Busquets, Modric like Xavi, James like Iniesta. It would be a lot more aggressive and direct, and rely more on stretching the play and switching the field rather than triangles in the middle, but with individuals of that talent I think it could work.
In this formation as Sumlit said Bale and Ronaldo have to do a lot of defensive work that Di maria used to do, Hames is slow as hell to do Di Maria's dirty work in the defensive section also with Kroos and no Xabi they will not have any control in the mid field basically Kroos and Hames are Iniesta lite in their attack. So Modric is the only one they rely on who will be try to take control of the midfield. I think either way Mad-rid are fricked and Carlo will probably lose all his hair in trying to get the balance of the squad right at the same time playing all the star players.