Yeah I read about this when they first announced reformatting the UCL. They basically want teams that have history and reputation to be in the competition more. There was a lot of fans angry and annoyed at this proposition. Quite rightly too. Take Chelsea for example, since Abramovich came in in 2003, they've been a regular feature in the Champions League and have won it twice. Even if they position how they are currently, they could still earn a place due to history.
I think that idea may have been squashed but essentially this is exactly what UEFA opposed about the Super League so essentially if they were to go that route and stick with the idea, they're going to be hypocrites.
Personally, I think the Champions League should be what it states CHAMPIONS. They have a UEFA Coefficient Standings so why not utilise it? The champions of the top 10 nations, based on the coefficient league, play out a league or even a straight knockout format rather than having 4 or 5 different clubs being able to enter it.
Also, if you get eliminated from the UCL, teams should be out of Europe all together. None of this nonsense about relegated to the Europa League than relegated to Europa Conference League. Once you're out of your European competition you have "earned" the right to play in, that's it over done.
All these things put in place by UEFA, the FA etc. they make it sound beneficial to the game for everyone but read between the lines, it only increases the dominance of the already elite and keeps them there for a long while, as you've pointed out.