I wouldn't say that it's terrible. It's just not good enough but it's still pretty close to Finland and pretty much on par or better than everything else in Europe excluding Sweden.
An almost bigger problem is the SL. NL clubs and SIHF should do a better job supporting this league in a way that would make it possible for SL clubs to fill their stadiums, ice a strong lineup and not lose any money. Also, the Lions are the lone club with a consistent SL farm. I think that's a problem as well. If you're too good for the U20 elite league but can't get a guaranteed spot in the SL (only very prospects get a guaranteed NL spot) your only choice is to leave the country. If you have NHL ambitions you can't afford to just waste your time playing U20 elite league for years.