I think we've generally not been bad at producing football league players. I think Giles, Sanderson, Ennis, Watt will all go on to play in the Championship regularly. Taylor Perry has a chance too as he seems to get into good goalscoring positions from midfield.
Gibbs-White is the best that we have produced since Lescott maybe? Mark Davies might have fallen into that category had he not been such a tool. Ennis too had it not been for some bad injuries.
I think the level of player we are producing is very gradually improving. Lewis Richards (ok, signed after Brentford shut academy down) and Luke Cundle I think are very good footballers. Otasowie is now obviously a first team squad member.
I'd agree we are a way off where we want it to ultimately be though - Chelsea is probably the benchmark of a world class operation but then they are very aggressive, they cover almost everywhere, and don't care what people think of their approach