This may be true, but the "better product" will only exist at the very top of the industry. Games involving the wealthiest teams will be good; games involving the "have nots" will be unbearable.
Attendance and ratings for the top-level teams will increase, but only slightly. Attendance and ratings for the lowest-level teams will decrease significantly -- to the point where those teams will be forced to either go out of business or move to another city (where the same process will inevitably take place).
Fans of the best teams may say "So what, let the best teams survive!" But the problem with that concept is that eventually you're left with a league of just a few teams, which leads to a decrease in national ratings, which ultimately leads to a decrease in profits. So, even the richest teams will realize that they need some type of parity to maximize profits, even if that parity is manufactured.