A couple of things
It wouldn't be knocking out a higher club, it would be knocking out an academy side.
Also this shouldn't be about what benefits the higher clubs, it's a Lg 1 2 cup.
As I said elsewhere, I very much doubt this was not done without one eye on B teams entering the league.
I hope that the because the bigger clubs declined it may put them off the idea.
Having Spurs B in the league is bad enough, but Reading B?