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Feeder leagues work fine in terms of building a draft pool for OOTP. They don't work like "real life" amateur baseball. The knock on them is you end up needing a lot of feeder teams if you have a big league with all levels of minors. These teams have players, play games and generate stats. That means they tax the resources of your game & system. A reasonably middle to high end computer with decent RAM that should never be an issue.
As far as what they add, it depends on what you want. My preferred play style is stats only. The beauty of feeders is every player in the draft pool has a 4-8 year stat history that you can look at and judge. Without feeders the game will make stats for draft pool players but you really don't know what they are, if they are ratings weighted or if they are even "career" or "senior season" stats. It makes drafting when you can't see the ratings a total crap shoot.
Beyond stats only play I don't think I'd use them for not other reason than that the game runs a little smoother without them. But they do work fine.
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