In terms of the FA Cup we should always go for it as best we can, otherwise we are disrespecting our own history. Haven't been overly concerned by League Cup for a long time however, which has little upside to it until you reach the semi finals.
I don't buy into the argument that an FA Cup run detracts from League performance. Sometimes it will do sometimes it won't, but what it can do is generate a positive feelgood factor, and generate more much needed income, which can only be a positive for clubs like ours.
Not sure why we are discussing this now though given our participation in the competition is still some way away.