If it offers any crumb of encouragement with my FM2023 Latvia save, the board have (finally) upgraded my youth facilities to "Excellent" and I've had a couple of Latvian kids come through who look handy (both are strikers which is a bit annoying as I play with 1; PSG rumoured to be interested in one of them though which is a great sign). So "the nation" is going to improve.
The Latvian league is still sat 8th in terms of ranking and I got knocked out of the CL in the Round of 16 for the first time in about 8 seasons which has pissed off the board . Players still want to leave for the massive clubs, but I always go for the talk with them, they didn't meet the valuation, enter high valuation loop. A few times it gets met and I just refuse it leading to an unhappy player... but they still perform well. I actually had a reputation amongst my squad of "not keeping promises" which was an actual problem, so had to sell a few players and re-invest.
Overall, though, the side is still very strong and, more importantly, the league is getting better. Valmiera qualified from the Europa League group again, won in their playoff but lost to Leipzig in the Round of 16. Other sides (RFS, Riga, Auda) are picking up some random very good players on free transfers. I think it's because every club is rich so they offer silly wages but they're getting players who are causing my side some (small) problems and should see those sides do better in Europe.
Definitely a bit of a slog, but it does get better once you get past the stage you're at.