Steve,
I have given my view on this when it was raised a few weeks ago. I think the FL cup should be open to all FL teams regardless of what division they are in. I disagree with any suggestion to allow the FL one and two teams to enter first or to have a separate cup for division one and two teams and another for the rest.
there is obvious demand for the cup, demand that cannot be filled by a 32 team cup. Can a 64 team cup be organised instead? If not, then I would suggest running the cup over two 32 team cup competitions with the two winners meeting in a final to decide the FL cup champions. That way 64 teams get to enter.