I'd play a (mostly) 2nd string until the final rounds of 16 or even 8 of any of the cups. Then look at how our league position is at the time and decide how to proceed. Pursuing Top 4 is (to me) the main priority if we have them team to do so.[/QUOTE
As a club we need to be aiming to achieve CL qualification on a regular basis, not just as a one off every 5/6 years or so. If we fall just short of CL and qualify for EL then we need to embrace that too, at least in the early years of our project.
As a club/squad/team, we have to get used to playing 2 games per week, and that will only come with practice/experience. Secondly, we have to improve our club coefficient ranking. It'll be fantastic as a spectacle to be in a group with Barcelona, Juventus and Monaco, but let's be honest, most of us would prefer a draw that would make qualifying for the knockout stage that little bit easier.
Personally I would take each game individually and play a XI good enough to win that match. Also need to take into account league games either side when deciding who/how many to rest. We have to take the competition seriously though.