I disagree with the home region part (although I get the appeal), but overall there could be something to the capped amateur budget. Make it a little more dynamic though, with all non-playoff teams participating in a weighted lottery for budget amount (playoff teams get fixed amount based on how deep into the playoffs they go). That amount can then be increased based on teams losing a (say) FA 30 or under who are offered a QO, and 50% of the amount can be traded. Once you reach your budget limit, you can still sign players but for no more than 100k. Get rid of all other forms of compensation etc. Roll IFA's in as well.
Not sure if issues would crop up from this (some less desirable destinations could be at a disadvantage for example, although I think players would tend to follow the money), but it would make things more interesting overall.