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It would be better, it's just unlikely. You'll probably produce a number of fair players who can plug the gaps which is a part of it but the chance of producing a "star" who's going to consistently play for and improve a top team is more like a once in a generation thing.
Who was the last for Spurs before Kane, Sol Campbell maybe?
aggi
cornelius_blackfoot
But would it? The possibility of finding home grown "stars" on cheap contracts would be better no?
Loans and transfer fees would be the fuel that keeps it ticking over whilst you produce a "star/stars" And the attachment/loyalty of academy players means you can keep them on relatively cheaper contracts for longer, because they want to play for the team they've supported/been with from a youth.