The problem with the current system is the gulf in the salary cap between the Super League teams and the Championship teams that will be competing in the Middle 8s. It's a very tough ask to expect a team on a much lower salary budget to compete with a team on a much higher one. It's going to make promotion extremely difficult and the odds are stacked in the Super League teams' favour. All eight teams in the Middle 8s should be on a level playing field, salary wise, in order to give everyone a fair shot at promotion. With the current system, promotion isn't a certainty for any of the Championship teams.
The benefit of having a franchise system is that it allows teams in the Super League to run themselves as businesses, safe in the knowledge that their status in the division is secure as long as their clubs are run properly. The downside of this of course is that the teams in the league below aren't really playing for anything apart from hoping that come the next round of licence application that they'll meet more criteria than one of the Super League teams.
With promotion and relegation, in a one up, one down format for example, the teams in the league below are playing for the chance to get into the league above and establish themselves in that division. It makes for competitive games in the Super League, with teams knowing that if they lose too many games they'll be dropped into the league below, rather than just ending the season without a play-off spot for another year. It also makes games in the Championship more exciting too, with teams knowing they are actually playing for promotion, rather than just being champions of their own division and then staying there again the next season, which happens in a franchise system. Quite simply, the stakes are higher.
I'd have promotion and relegation in a pure format, with the team that finishes top of the Championship earning promotion and replacing the team that finishes bottom of the Super League for the start of the next season.
As for the current system, I'd have an even salary cap across the Super League, Championship and Championship One, to allow teams the best possible chance to earn promotion and even the odds. It will also allow teams like us and Leigh, who are more than likely to be competing in the Middle 8s, to start planning for next season in terms of signing players, as we know what salary cap we'd be operating under.