I think this may well go ahead. As Gary Neville suggested, the people behind it don't really care what people think about them, they only care about money (Glazers, Abramovich, Kroenke, Perez).
These plans will make them a lot of money, and UK based fans won't abandon their clubs (no matter what people say). If UEFA ban all of the top teams, their own competition becomes worthless.
I don't agree with it, but it can't be overstated how much of footballs global appeal and money comes from the elite clubs.