Hypothetically, if we could rub a genie's lamp and make a wish to be guaranteed superb fully developed players coming through the youth academy every year we have improved 11 positions for a relatively small outlay.
It's a slightly more realistic proposition than a swap deal involving Crystal Palace or Championship Watford being able to, or wanting to, take on the wages of the busted flushes you've mentioned.
My point was to say maybe we could investigate the possibility of using swap deals to reduce transfer fees for players who could potentially improve us in some way and are likely available. The players mentioned and fees in question for swap deals, were possibilities based on players we are likely going to try and move on, and who's next contract, no matter who it ends up being with, is definitely going to be less than the 1 they are on now. Certainly in the cases of Bolasie, Sigurdsson, Walcott and Tosun, who with age, combined with performances and/or injury problems will be on their way down rather than up.
And whilst you are right, that Watford having been relegated, may struggle to afford such wages, they will also be struggling to keep players like Deulofeu, who will likely have some form of relegation release clause in his contract. So maybe we could afford to buy him outright for less.
As for your other point, I for 1 would be delighted if we could bring through 11 youth prospects who would improve the side. I have continually championed giving youth players opportunities, including those i don't believe have yet been given fair chances and have proven to have ability, like Dowell for example. However, the only way players like that will be able to prove they are ready and grow into top players is to be given opportunities in the 1st place.
But lots of people are quick to judge players at a young age, with little or no experience, and assume that they are not good enough based on fleeting glimpses, and would instead, choose to spend tens of millions on other players from different leagues, also based on fleeting glimpses, because they have exciting reputations. Reputation that could only be formed by being given the same opportunities to grow elsewhere.
So yeah, I would suggest the possibility of us signing 2 players, players who have either been heavily linked with us in the recent past, or who have previously played for us, and who would jump at the chance to join us and play under 1 of the best managers in the world, is slightly more realistic than finding 11 ready made players in the youth team.
And that's ignoring the whole genies lamp thing as well.