As it stands now the Welsh clubs in the football league are the only teams in Europe without a route to European football. The English FA have already barred the clubs for qualifying for Europe via their competitions.
City as I see it are caught between a rock and a hard place. There is no way the club can ever drop into the Welsh League, the future is via the Championship and Premiership. City could take a "restraint of trade" legal action against Uefa but they have already said if City want Europe they can get it through the Welsh League.
The full details are here in todays Western Mail.