Agreed. Both the CL and Europa Leagues are farcical these days.
I'd have:
CL being the competition that winners of ALL domestic leagues and cups enter. Finishing 2rd, 3rd and 4th in the league doesn't make you a Champion of anything (see Liverpool.)
So in England, the Premier League and FA Cup winners enter it (NOT the League Cup as nearly all other countries only have 2 domestic trophies to win, their league & cup). Also, the Europa League winners would enter it.
The CL format would be knockout straight away, 2 legs all the way until the final, which is ONE leg. No seedings either, a straight-up draw, just like the FA Cup has. If Chelsea get drawn against Real Madrid straight away in the first round, great - it would breath some life into the competition which, let's be honest, is pretty boring until the knockouts. The group format is a joke (Chelsea v minnows isn't fun for anyone, not even the zombies at Silent Bridge.)
If you get knocked out, you're out. You go back to England and try and win the league to get back in.
The Europa League should be renamed and revamped. All teams that finished 2nd, 3rd and 4th in their respective countries would enter it. Again, no seedings - straight up knockout football. The competition would become prestigious again with the likes of Arsenal and either Chelsea or Man City / Real Madrid or Barcelona playing in it every season. The winners of it get a CL place the next season. More money for people who get into it, too. Share it more equally with CL teams.
Don't award finishing 5th and 6th in the league with Euro footy. It's a joke and it only hinders the teams that actually make it (see Swansea last season, really messed their season up playing Thurs and then Sun every other week with a small squad.)
Make me UEFA President - I'll get it into action.