TW, I believe this is a phenomenon that is common to all professional sports teams nowadays. Are the San Antonio Spurs really from San Antonio? Are the New York Jets really from New York? Are the St Kilda Saints really from St Kilda? Well, you get the picture..
What I find a lot worse is if the majority of the players are from another country. Don't get me wrong! I think international players add quality and variety to the game.
But take for example the German football league (That's the one I follow most closely)
There have been games when a team played with not one German player on their team. (Well they had quite a few sitting on the bench..

)
There is a rule that at any point of the game each team may only have 3 players (think it is 3, I'm having a mental blank right now, so please feel free to correct me) from non-EU countries on the field, but there is no limitation as to how many players from EU countries can play.
From what I see in the English Premier League I think that the majority of players still English (or British), so maybe this international player topic is not such a big issue for you guys, but it creates a bit of a problem in Germany.
Obviously the coaches rather let experienced internationals play than young unexperienced Germans. But then how should the Germans get practise? And when it comes to choosing the German national team, they only have the same old players to pick from.

I have to admit though that there has been improvement in the last couple of years and the national team has some fairly good young players at the moment.