Dewey, the new penalties are far harsher and involve damaging your internal development of talent. With steroids mostly out of the game, players don't play at prime levels into their late 30s anymore. With the smaller market teams taking up front risk to lower contract demands later, we aren't seeing prime free agents hit the market in their mid 20s anymore. Hence, free agency is turning into a really bad method of filling a team as most FAs are early 30s and likely have 2-3 years of prime while you are paying them for 7 years and will eat it on the back end. It doesn't make a whole lot of sense. The sox were the first large market team to see this and their development machine kicked in after the 2004 title. That title developed solid talent enough to put the 2007 title winning team together and to build a core of home grown players that allowed you to win another title in 2013. The Yankees saw this and unfortunately were already tied into massive contracts that made their ability to shed salary and rebuild unlikely, but they did develop their system to where they are now.
Fast forward to now and the best method to build your team either via trade or homegrown is to develop talent. The large market teams can develop talent and then deal it off for higher priced assets (like we did with Stanton, Robertson, Frazier, Gray to an extent, etc). But the importance here is the development of talent. Now, signing a QO free agent hurts more for large market clubs. With the slotting of the draft, losing a 1st rounder crushed your draft so they scrapped that. But losing a 2nd and a 5th rounder plus taking a big hit in the INTL market means 2 less higher value draft picks, losing the extra slot funds to sign a later round HS talent and also losing funds that could be distributed to 3 or 4 good INTL signees. It is no longer just a 1 for 1 deal. Now, signing a QO FA and being over the lux tax as a large market club entails the possibility to sign that one player and lose up to 7 players you had your eyes on in the amateur realm. Add in the extra funds being over the lux tax and the impending chance to have your 1st rounder dropped 10 slots for being over the top limit hurts you further. The penalties don't sound as bad on their face, but they are really onerous, especially for any large market club intending on developing talent from within