I can understand why from a purely fans/football club perspective removing the distance rules might seem appealing, however for the 95-99% of kids within the academy system, who are there to make up the numbers, it will only create problems.
Imagine you are a 13 year old lad (I use this age as U14 is really the start of "serious" academy football) and you live in lets say Nottingham. You are at a local academy, but suddenly Liverpool, Everton, Man Utd or even Chelsea show an interest in you. You are a very good prospect, but not one of the 1-2% of "certainties" that exist within the system, what do your parents do? Do they completely disregard your schooling and undertake the 2 hour plus journey 5 or 6 times a week, including maybe £20+ petrol costs each day, or maybe move house if this is financially possible (and yes this does happen). Remember most academies schooling option is only really set up for scholars, who have already done their GCSE's and even then it is poor, in the shape of BTEC's in sport. What a choice for a 13 year old's family, driven by the dream of fame and fortune, when the reality as we all know from this thread, even for the 18-19 year olds who have "made it" is sadly different.
The previous scenario is bad enough, but that is for the top 5-10% of kids within the 10,000 or so currently playing academy football every year. Imagine the problems and uncertainties it will cause for the other 90% who may not make it in football (thats roughly 9,000 kids every year), but who are still needed to enable the top kids to play what is a 16 player team sport. Where now they live in a world of uncertainty, where they or their parents are looking over their shoulder for the latest "local" kid to take their place, now it becomes a worldwide threat, with the inevitable comings and goings.
All this is without the previously mentioned threat to smaller clubs and their sometimes excellent academies, run on a shoestring budget, who have actually developed some of the talent that the big clubs will be poaching. As a lifelong red I obviously want the best team with the best players, but not at the expense of children who are already in most cases used like pieces of meat.