I may not like what Arsenal did in 1913, but there were no rules then to stop it. The rule in place in 2002, which the Football League used for twice rejecting the move to MK, was introduced subsequent to the Arsenal move. So all that is proved by bringing up the Arsenal move is that progress that had been made was rolled back by the 2002 move to the far more chaotic and dissatisfactory situation of 1913. Clearly not a good thing.
What was the state of the league pyramid in 1913?
This is pretty much the clincher on the whole Arsenal issue, because the league system as we now know it simply didn't exist. A second division was only added in 1892 and automatic promotion and relegation between the divisions didn't happen until 1898. (http://en.wikipedia.org/wiki/The_Football_League) So, in 1913 the 'football pyramid' consists of just two divisions of 20 teams each (1905 expansion). All any 'new' club had to do at that stage was be created, get itself elected to the second division and then win one promotion to be in the top division! And all of that would have been within the rules - and indeed exactly that sort of thing was relatively commonplace then - as was all sorts of underhand dealings like the collusion between 'test' teams and Arsenal's elevation to the first division after the war, for example.
Basically, it's like the Football League at this time was the Wild West, where law was random and rough at best, compared with a century later when far greater order had been applied to the game and the cowboys had been run out of town - or so we thought!
That's the reality here... Those bringing up the Arsenal move in 1913 are basically referencing a situation from a relatively ruleless time as a justification for repeating those actions in the current day. They might as well be asking for the return of lynching and gunfights to the law and order process!
The 1913 Arsenal move is fascinating in how it helped shape the rules of the leagues and opinions on clubs moving. That's it. It's not a precedent for allowing the creation of Franchise FC, because it pre-dated the rules to prevent that and the league system that Milton Keynes leapfrogged in 2002. Discuss it all you want, but the 1913 Arsenal move provides no succour or legitimacy to Franchise FC whatsoever.