Just to add some sense to 'how crucial is Dinamo for the national team programme':
Number of players in top European and NA teams (KHL, SWE, FIN, GER, SUI, CZE, NHL, AHL), without Dinamo:
06/07: 23 (16 - Europe+RSL, 7 - NHL/AHL)
07/08: 25 (16 - Europe+RSL, 9 - NHL/AHL)
14/15: 21 (17 - Europe+KHL, 4 - NHL/AHL + 17 - Dinamo)
15/16: 21 (15 - Europe+KHL, 6 - NHL/AHL + 18 - Dinamo)
16/17 contracted: 18 (14 - Europe+KHL, 4 - NHL/AHL + 20 - Dinamo)
Yes, the sheer number of Latvians playing in top leagues has increased. Yes, around a half of Latvians in Dinamo couldn't find a spot in other top team, however the other half could and would.
Moreover, with regards to the half that couldn't find a spot anywhere but a 2nd tier league. I have seen no evidence of how a fringe 4th line role in the KHL (that would be an equivalent of playing as an import in a 2nd tier league) has benefited any Latvian to grow better, once he is 21 or older. The road to elite leagues might be longer without Dinamo for some junior players, that's true, but the national programme wouldn't hurt much.