Crewe lost 16-year-old England youth international Dan Smith to Liverpool last month and academy director Collins admitted many of his young guns are wanted by the Premier League's elite.
Last week Crewe beat Manchester City's academy team 2-1 and Collins told the Crewe Chronicle: "I'd be lying if I said it wasn't a disappointment to lose Dan. We hoped he'd stay but he was swayed for whatever reason.
"But you only have to look at Nick Powell to see what I think is the right thing to do.
"He has played 50-60 first team games now while six or seven of his England team-mates were playing for Man City's youth team against Crewe on a Tuesday afternoon in front of one man and his dog.
"Nick could be in the play-off semi-finals soon hopefully. I think Nick made the right choice."