You really are quite determined on making yourself look a complete fool aren't you? Saving money on the non provider would boost both the other regions and the national team you thick ****.
Reading this thread reminds me why the WRU should have ditched the Rabo league when they had the chance years ago, it in the Irish interest to weaken their rivals. To maintain the consistency of your argument, you also must think that Connacht should also get equal union funding to Leinster despite contributing far less to the union that pays it out?
I wonder if you believe the same thing in real life, such as the NHS etc. Those darn people paying little into the pot allowed to get the same amount out of it.
I firmly believe that there is talent emerging in Gwent, with the likes of Ieuan Jones, Jack Dixon, Hallam Amos, Jonathan Evans, Sam Parry, Matthew Screech (Blues weren't prepared to develop him), and Jason Tovey potential future Welsh internationals (okay, Tovey has been touted for a while, but he's back playing quite well).
Looking at the recent U20's squads, the breakdown is much more evenly distributed, with a healthy percentage of the players playing their trade in Gwent.
Maybe in 10 years time, it'll the Dragons who are developing the majority of Wales' international players. It's somewhat down to the luck of the draw as to the quality of the players coming through in the region. Cut the Dragons funding and you risk jeopardising the region as a whole. We've already mostly cut off the Valleys, and now you want to do something similar with Gwent? It's very difficult to reverse actions such as these.
Yes things are difficult at the moment, but jeopardising the long term in an attempt to secure some short-term success for the other regions isn't the way to fix things.
Edit. With regards to Europe. I draw the line with Aironi, because they are so far off the back that they'd be better off developing in the Amlin. But otherwise, it's important for the smaller teams to get equal revenue from the competition as the larger, richer ones, or things will quickly become even more lopsided than they are now.