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I just seen today that Kildare have developed an under 23 squad to compete in the junior football championship.

I think this is an excellent idea and Offaly should consider the same approach. Players are with underage development squads for 4 to 6 years until minor. Then it turns to under 21 which could possibly only be one game and then after this if not strong enough for the senior team they are forgotten about.

Personally I think Flanagan should be left in charge for the foreseeable future and given the opportunity to develop such a player feeding structure.

What does everybody think?

Could work but not 100% sure. Most 22 year olds that are going to make it will be either on the extended senior panel or should be some of the stand out players on their club team. Personally, I feel that they would get more experience being a leader on their club team and driving that forward and getting games - league and championship, (possibly in both codes) than they would training for a junior championship with Offaly.
If they come back to the surface at club level, then having an extended/open county panel is probably the best way forward.