That would push up wages as smaller clubs would only get the full benefit of parachute payments if massively overspending on wages.
Just to play devils advocate, if there were no parachute payments at all, would it not mean that promoted clubs would have little chance in signing decent prem players, as could only offer 1 year contracts/strict relegation clauses, and so would be unable to complete, meaning the prem would become a closed shop, with 3 promoted teams coming straight back down?
I agree the current system is unfair and will get worse, but there probably needs to be something in place