The Spanish coach wants to bring in a pre-qualifying tournament for the smaller nations to mirror the format used in the Champions League.
"As a manager of some of the players involved (in Wednesday's Andorra-England match) I was really disappointed watching them play in this kind of game," said Benitez on the eve of Liverpool's Premier League clash against Arsenal at Anfield.
"If we had an 'A' and 'B' competition it would be better. We should make it similar to the way it works in the Champions League," he told reporters.
Benitez said England's players risked unnecessary injury in matches like the one against Andorra.
"Not a lot of people are watching these games on television and I can't understand this situation," he said. "It is crazy to see our players all around the world, running the risk of injury in the interest of nobody.
"As a manager of a small country, what difference does it make to him to lose 3-0 or 5-0?. Nothing.
"If you can lose 13-0 like San Marino did to Germany (last September), why does it matter?".
SPOILING TACTICS
Arsenal manager Arsene Wenger agreed with Benitez, saying Euro 2008 qualifiers too often pitted 'big' nations against minnows in games that left the major countries facing teams committed to packed defences and spoiling tactics.
"If you want to see a good game of football, then both teams have to play to win and that is not what happens," said the Frenchman. "I feel very sorry for many national coaches because of this.
"In these games they are expected to be 2-0 up in the first 20 minutes and if they are not, they are booed. But the other team is only interested in 0-0 and that is all."
Wenger backed under-fire England coach Steve McClaren, whose side drew 0-0 with Israel last weekend and were booed after a goalless first half in the 3-0 win over Andorra.
"I was appalled and I give my full support to Steve McClaren," he said of an England coach who only took over last August. "For him it is much too early.
"England took four points from two away games and I blame the competition for the situation that happened."
Moving on to Arsenal matters, Wenger said he was unconcerned at recent media reports of a takeover.
"It is only speculation," he said. "If something is happening, I don't know.
"My only concern, if something did happen, would be that the new owners were interested in developing the club."
Arsenal, third on 55 points, are looking to beat fourth-placed Liverpool for the fourth time this season, having triumphed at home in the league and twice at Anfield, in the FA Cup and League Cup.
Brazil midfielder Gilberto is doubtful with a hip injury but Arsenal welcome back Togo striker Emmanuel Adebayor after suspension and defenders Emmanuel Eboue of Ivory Coast and Frenchman Gael Clichy after injury.
(reporting by Timothy Collings and Jeremy Butler)
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