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There probably should be relegation from Division 3, but you have to make sure that the team coming up can cope, financially more than anything.
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Don't see that as a problem as the attendances in Divsion 3 generally only number a few hundred, sometimes as low as 200/300. Plenty of non league clubs can better this. Don't know what the average figure is now but in years gone by Pollok Juniors, who play in the south side of Glasgow, regularly had gates of over 1000.
I'm sure some of the big Ayrshire Junior teams could match Divison 3 gates too. Even this year's champions Gretna have relatively very low attendances.