I don't think it's that bad an idea. I've discussed similar with some friends in the past. I'd prefer to be playing similar standard teams all the time, than minnows and giants. However, the loss of the finals tournament would be a real shame and it'd open up the possibility of only a handful of European World Cup places being genuinely up for grabs.
It looks like the personal battle between Blatter and Platini is starting to have profound consequences and you'd have to worry that both are putting personal self interest ahead of the broader good.