From a sort of neutral point of view, I think the rules surrounding teams that either fold or fail to fulfill fixtures is one of the most contentious subjects around NWC. There doesn't seem to be any consistency which causes the unrest. What happened to Woolston and Hindley, if I remember rightly, was that they had to re-enter in Div 6. Both of which I personally thought was out of order because it took both clubs back years. Congratulations to both on their resurrection and the progress they've made since then. Whereas Orrell St James did, and possibly Moorfield can re-enter half-way, Div 3.
Personally I think that re-entering half way or a two division drop, is probably the right thing to do, but it must be done with consistency. It certainly should have happened with Woolston and Hindley although I still cringe at the decision taken against Woolston. That must rank amongst the worst one ever made given the circumstances at the time. I also think they should re-enter with a points deficit that equals the amount of games they forfeited in the higher division. So if a team forfeits 5 games they start with a 10 point deficit i.e. on -10 points come season start. That way the teams already in their have some form of compensation against team parachuting in from a higher level and the team dropping really has to work to progress.
Re-entering Moorfield and possibly Moss Bank in Div 6 will almost certainly result in more 18-0's and Div 6's season fizzling out around December. Div 6 should, in my opinion, be structred along the lines of the summer merit league where the teams can arrange and play games as suits them best that way it encourages involvement and gives new teams time to establish. Dropping teams from much higher standards in there causes unnecessary hassle and imbalance.