What this does demonstrate (25 players out on loan now) is how unfit for purpose the current model of U23s football is. We're sending players to Matlock, Kettering, the League of Ireland etc rather than use the traditional in-house route of development. It simply doesn't help anyone because the standard is so low.
I'm not sure what the answer is, because there's no way we're going back to the 80s/90s where the reserves were made up of a mix of young players and out of favour/recovering senior squad members, and putting U21 teams into the Football League Trophy has been a failure and more or less signalled the death knell for that tournament (look at some of the attendances in the early rounds), but at the moment it's a waste of everyone's time.