Absolutely right. Clubs get 500k for each place in the league whereas they only get a winners fee for the FA cup plus any gate money. For smaller clubs it is great because they get much needed increased revenue from a good cup run playing against Premier teams. For the Premier clubs they use it as a blooding exercise for their fringe players.
This is what the TV money from Sky, the separation of the top league from the rest of football and the corruption within the FA has done to our beloved game. All started with ManU being allowed not to participate in the FA Cup so they can play in the World Club Championship (Chelsea never had that concession) and followed by Wenger but now spread to all Prem clubs and even some Championship clubs.
We are meant to have arguably the best league in the world but we had that already. Look what money did to the Italian league and it is happening here now. Too many foreign players on ridiculous wages, sky high ticket prices and money-laundering owners.
Oh, for the good old days when footballers were fottballers and not Olympic divers!