I don't see any issue with the 60 cap rule. Kids are enticed to England for a better education at schools like Millfield or universities like Exeter who have great relationships with premeriship clubs. That's fine with me, as it's good that those youngsters have those opportunities, as that's not always the case in Wales. The 60 cap rule gives us some levarage to entice those players back to Wales at a later date, as well as other Welsh qualified players at what is likely a reduced salary than what they'd otherwise need to fork-out. People may not like that, but it works well, and England and a few others do similar.
Yes the regions are a bit of a mess right now, they despirately need to improve which would help them recruit better players (think back to the caliber of player the Ospreys + Cardiff used to attract), but I see the 60 cap rule as being part of the solution to that, as well as investing in better coaches. Look at the Dragons, not sure they would have signed thr likes of Moriarty, Rowlands and Roberts without the aid of Gatland's law, and after they parted ways with the useless Dean Ryan their performances have improved massively, even if results haven't always gone their way.
The argument that players get worse when they move to the regions is a false one imo. Rowlands was used as an example earlier in the thread, but that can't be further from the truth. He was Welsh rugby's player of the season last year, and his form had been even better this season prior to his injury. He's come through as a leader too. North, despite lots of injuries has improved after really getting stuck in a rut at Northampton. Costellow has progressed well, earning his international debut this month. Trying to think of an obvious failure, apart from Tompkins maybe, but it was obvious hia heart wasn't in it and he was just biding his time till he returned to Saracens.
Look, Welsh rugby is in a hole right now. The governence needs an overhaul, the regions need an overhaul to get them competative, the international side needs a full set of new coaches, but the least of our worries is Gatland's law which has probably done more than anything to stem the slide.