Red's suggesting would actually involve a lot more shitty teams since the league
winners of bad leagues (e.g. Cyprus and Finland) wouldn't need to qualify for the Champions League. Therefore, I think you could use your own argument against you. Why let the champions of Cyprus play the first knock-out match if they are going to draw FC Barcelona and get knocked out anyway? It just delays the inevitable.
I like the current version, actually. It secures 6 games for everyone which means a lot financially for the smaller clubs. However, not so beneficial for the smaller leagues that it means that the champions of shitty leagues as Finland and Luxembourg will get directly into the tournament (like they used to be in the early 90's). Basically, now the Champions League involves almost all the best teams in Europe with the exception of few smaller newcomers. Not every league champions will manage to participate in the Champions League as they did back in the early 90's, but if they manage to qualify, it will give them a huge financial boost. Sure, some groups won't be as exciting as others, but most the early knock-out games in the old structure weren't either. And even on the final match day there are still interesting games going on (Shakhtar-Juve, PSG-Porto), and since there only are two match days and all games are played at 20.45, it's never a problem to find an exciting match to watch.