The problem that I see is that is very similar to world cup. I remember that Once I thunk in a new format for the nations competitions with the teams ascending and descendisng, but with more teams. I think that the rugby must be evolve and be more fair in this aspect. In the other sports there are qualifings for the european contest. But If for example Ireland descend to European Nations Cuo one year, Ireland is more strong than the all other teams. The solution: More teams. Of this way the team that descend realy deserve it
Example
7 nations: Wales, Ireland, Scotland, England, France, Italy and the first year the last champion of ENC Georgia for example
6 nations south (The RCH): New Zealand, Australia, South Africa, Argentina, Samoa, Fiji, Tonga
It's more fair and the teams of tier2 have more oportunities for contest with the tier1
Example
7 nations: Wales, Ireland, Scotland, England, France, Italy and the first year the last champion of ENC Georgia for example
6 nations south (The RCH): New Zealand, Australia, South Africa, Argentina, Samoa, Fiji, Tonga
It's more fair and the teams of tier2 have more oportunities for contest with the tier1