I don't disagree with anything you are saying ultimately, maybe this is just where the squad/club is at? Maybe we are League 1 level as a club right now?
Personally I think the club should heavily focus on keeping a strong connection with Boro, do anything to have players sent to Palmerston every season on loan. Given the financial circumstances it would be a win for the club, we get a quality talent that can more than match Championship level, while not breaking the budget.
There needs to be change on levels at the club, from the BOD to the manager. But as you say, it comes down to budget.