First of all, I'd like to point out that I already addressed some of your points here
(270150.28) and here's an explanation of the role of free agency in BuzzerBeater
(270150.23). These posts explain the basic concepts that need to be understood about free agency, so please read and try to understand them before continuing the discussion.
I must add that that another BB concept is clearly misunderstood, as pointed out by The Sentinel and Brambauti. Training is a big and very important part of BB. Clearly, it is not a good thing when player trading takes more importance over training. Has that happened? I don't believe it has yet, but it was close. Some managers will always lean more on training, some more on trading, there's no way around that, but the general idea of the game is that training is more important than trading. Training should be rewarded as an essential part of a long term strategy game like this. That's the way it should be. I will try to explain how a situation has arisen where the opposite is true for some managers.
We've had very low prices in BB for a long time. It was a period where due to the reduction of active managers in the game combined with rather lenient free agency prerequisites the TL prices of most players have been lowered to the point where the purpose of training has come into question. A situation has developed in which it was very easy to buy old high salary players which in turn undermined everyone's resolve to put in the time, effort and know-how in training. A team that trains no players and is based solely on trading has no room in BB. Not in the long run, of course.
Free agency caused a big part of that and it needed to be changed. Due to the longevity of such an undesirable situation, more and more managers adapted to the low prices and shifted their focus to trading. Some even specialized in free agent acquisitions! The reduction in the amount of players released by free agency then directly detriments those managers, which is something I think we all agree upon. But, it is of my opinion that the effect of this change is overestimated. While the prices of high salary players do indeed continue to rise slightly, the prices of very young high potential trainees get lower at the same time as they make their free agency debuts, so there's some balance for it there. Also, let's not forget that the ratio of free agents versus normal players in the TL has always been rather small.
To conclude, I'd like to (again) remind everyone that BB functioned quite well before when prices were even higher (it was during the period with the highest number of managers!). It functioned well before free agents were added. We had seasons where they were completely removed even after implementation. If they would have been removed again the BB world would adapt and survive, so there's no need to fear change. This total removal has also been considered but it was decided instead that they can stay in a smaller capacity and that they can be used as what they were originally intended for - as a market balancing tool.