Godfrey, Pickford, Richarlison and DCL didn't come through our youth system and went straight into the first team squad, Holgate only did a year in the u23s, I think, after arriving from Barnsley. Davies did come through, it's true, as did Gordon but that's a poor reflection on our youth system if in 6 or 7 years we can only manage two bit part players.
Small handled the situation very poorly, however if he couldn't see a path through to the first team I don't blame him for leaving. Players like Garbutt, Pennington, Broadhead etc.. hang around Everton for the wages, get nowhere near the first team and sacrifice their careers in doing so. I think Small is correct not going down that route.
We hang on to players too long, we (Unsworth) prioritise success in meaningless u23 leagues when we should be using those competitions to get young players used to the system the first team plays and to get a look at players in a competitive environment. No player should do more than 2-3 years in the u23s, at that point they are either good enough for the first team squad or they should be released/moved on. Our youth set up is not fit for purpose, Unsworth and the rest of the set up should be moved on and a competent DoF should be in charge of instituting a consistent footballing culture all the way through the club. We both know that won't happen, sadly.