Well singling Arsenal out is not fair. I mean in Newcastle, how many English is in the team, and how many came up from academy? As far as I know, only Owen, Milner, Taylor, to a certain extend Harper. Out of these only Taylor came up from academy.
So the problem is not foreigners but rather the upbringing of English kids where even in age group competition, the priority is win rather than enjoy themselves.

The fact that English players are fooking expensive is well known among us. Rivalry aside, would Newcastle Utd fans be pleased to see the board forking out 20 million pounds on Stewart Downing or would you guys rather spend 18 million pounds on Ricardo Quaresma? Both are hardly close in terms of abilities and it is apparent that every Geordies would go ecstatic if such deal involving Quaresma exists.

It is the mentality of the English players, when foreigners are around you, WORK HARDER to get into the first team. It's a shame that players like Dani Pacheco and Fran Merida are highly rated and are expected to break into the first team at their early age and English players can't. It may also be the lack of awareness about flair as I've stated previously, just how many flair players are there in England nowadays? SWP, Joe Cole, Rooney and Lennon? When teams like Italy and Spain have plenty.

How come teams in Italy and Spain can nurture great talents in lower teams but England? Joaquin came from Real Betis, David Villa from Zaragoza, Luca Toni from Italy, Gennaro Gattuso from Rangers, Materrazi from Everton....etc. Just how many are there in England? Micah Richards, Theo Walcott and Rooney? It's all about the mentality if you ask me.