I agree with you, particularly with the issue of expansion. It doesn't seem realistic to create a Pan-European league headquartered in Moscow. Historically, other Europeans don't gravitate toward Russian leadership. A lot of these attitudes probably go back to Soviet times, but i think it will take time to break down the reluctance to partner up in ventures under Russian leadership.
The best time to attract European partnership was when the league first started up. Since then, a number of teams have gone bankrupt or had severe financial difficulty, which makes the league less than attractive for a lot of would-be expansion franchises throughout Europe.
I agree totally that there should not be limits on non-Russian players, provided that those players add significantly to the quality and prestige of the league. You can't surpass the NHL if you don't have comparable quality players.