"Are youth intakes overpowered in FM23?"
I don't think so. My intakes at Rangers have been very random in terms off potential range. One or two great potentials over 3 years who will linger in the club developing maybe one will attract interest from down south in a few years. The rest will fall down the leagues in Scotland.
If the whole system was broke or over generous, I'd be seeing it here.
Tbh, I'd expect Manchester United to pull and attract some big potential youths yearly. Whether they amount to it is a different story.