Regarding the -20% for all this can't be done as far as I know for technical reasons, as the % is associated to the internal quality number that can't be decreased, but, myself I did the suggestion about close the trainings for 120%+ teams if there wasn't promotion last season, and this, can be done "easily".

Then taking that point into account:
"2. First 4 teams should move to the next division. 4-8 should stay at the same division. 8-14 move to lower division."

With only 4 promotions the teams would be stuck in terms of quality, this would need a decression of margins everywhere really, cause teams at the end would end stuck everywhere too... and since the v.1 the main and original concept was that 8* and 9* are premium players, not something common.


Regarding:
3. At the highest division first 2 or 4 teams should compete in another competition.

In what Im agree regarding the top servers is, in "to group" teams in groups of 4-8 leagues and promote them all "almost always" to do not stuck the server, in a "cloud style system" there alltogether, creating too a unique cup in what if for example there are 14x4 teams, =56, then 8 bots should complete the cup 1st round.

Merge teams, and do a exception for the top servers is actually needed....