Those days haven't gone.
Clubs that had the foresight to invest in FA academies produce their own players on a regular basis, there is one just south of the river in this city.
Of course, those clubs with FA academies need to employ managers who can see the worth and are interested in developing young players for the first team.
Money would be better spent on this, rather than being dependent upon and paying for loanees who become surplus to requirements, or who return to their own clubs thankful that another club has improved them free of charge or attracting a payment in some cases.
I can see the point of one or two loanees, but half a team is excessive and counter productive in the medium to long term.
Agreed, if they aren't serious about investing in them or if they have managers/board who ignore them, they become a bit pointless.
Cotterill didn't appear to have time for the academy, but did really well managing his own way for a short time. I'm pretty sure that played a part in his departure in the end, the club wanted to see a return from the academy and we can see that now happening with knobs on - 6 academy or ex-academy players on the pitch against WBA (not for the first time either). And some ex-academy players bringing in millions for the club.
A Cat3 academy costs around 1m per year to run which may be beyond some clubs, but it shouldn't be beyond most L1 clubs.