It’s clear the ultimate endgame is that they want an identical domestic system to Australia. Eight states/regions/counties based at the test match venues with a squad size of around 20 each plus full academies (the same applies for the domestic women’s game). Each would be partnered/linked to whichever Hundred side plays at the same venue with the Hundred side competing in the premier limited overs comp, with the states/regions/counties playing both 4 day comp and a 50 over comp. The players not playing in the first XI would probably compete in a new second XI competition with the best academy players, similar to what the counties currently do.
The ten left over counties would be relegated to minor counties, all competitions stripped of first class/list A status and fade into obscurity with any young cricketers of promise snapped up by the academies of the eight states/regions/counties. Nothing more than a farming system. They’d throw a few financial crumbs to the ten left over by having the odd 50 over/ 4 day game at the grounds of the relegated ten counties in a similar way to what the Hundred was planning to do with their women’s competition.
The big question/hurdle for the ECB is how to make it happen, since you need a majority vote and we’ve seen what lengths that had to go to in order to get the Hundred approved. They could go ahead and just cut all county funding in a bid to financially force the change upon desperate counties, but they’d probably risk the government getting involved, so they have to be more shrewd than that.