I think that's spot on mate. When I was a kid, although I knew about big teams like Real Madrid, AC Milan and many others, my dream was to play for Chelsea. If not Chelsea, I knew at least that I would want to play my football at home in England.
Foreign clubs did not attract me at all. It was never about playing for a big club. It was all about playing for (or against perhaps), the club that you loved. In my case that was Chelsea.
Today's generation of players are not a lot different really. The majority would still rather taste success at home than abroad. Saying that though, I have noticed that when a select few, big foreign clubs, takes an interest in a particular English player, those players have always said that they had to seriously think about it.
Perhaps it's simply about money. Perhaps it's ego. Probably both. A player can satisfy both those cravings in England if he is good enough, so there rarely is a reason to leave. After all, any player who catches the eye of any of those so called big clubs, probably already plays for a big English club.