I think that they should scrap the existing set up. Have a 64 team competition, made of 16 groups of 4, each play each other twice. Winner of the group go into last 16 for the "Champions league" trophy, 2nd place teams go into last 16 for the "Europa League" trophy and 3rd place team go into last 16 for the old "cup winners cup" trophy. 4th place go home.
I think the main problem with the current competitions are there is too much cannon fodder, most groups in either the champions league or Europa League have 2 good teams and 2 poor teams, 9 times out of 10 you can pick the 2 teams that are going through before a ball is kicked, we need competitions with more teams from the top ranked 14 countries and less from the bottom ranked 40 countries. Therefore I would allocate 54 places to the top 14 ranked nations and the remaining 40 nations would need to qualify for the remaining 10 places