Aye, but I think a big part of the reason why interest is dwindling in the FA Cup down south is because Championship teams and even smaller Premiership teams know that it's pretty unlikely that they'll win it, and that the financial implications down there make staying up/getting promoted/finishing higher in the table much more important than any cup glory.
But since the Texaco Cup excludes teams that are playing in Europe, a team like Wigan (for example) would see a realistic chance of silverwear and a place in Europe. It would also help the likes of Man Utd as they are always complaining of a fixture build-up with the Champions League, etc, especially now that they have a maximum 25 man squad to choose from. The only teams I could see compaining about it would be the Old Firm, as one of them usually wins our league cup and gets the benefit of that, while they usually get papped out of Europe early doors. Far more winners than losers as far as I can see.