The Sale coach believes few English players would now get into the Wales team, whereas the opposite was the case just a couple of years ago.
Jones feels there is far greater strength in depth in the current Welsh squad than there was during his own Test career in the late '90s. He puts this resurgence down to the introduction of regional rugby - a project which he says is clearly working.
And he believes it's now a case of world champions England fearing Gareth Jenkins' Wales going into the Six Nations, rather than the other way around.
"A few years ago, I don't think you would have picked many Welsh players in the England team," said the former Ebbw Vale and Gloucester flanker.
"But now it would be the other way round. How many Englishmen would get in our team?
"It's a fantastic position for Wales to be in. I think the regions are showing that they are working now.
"I still think it would be nice to have another one. Maybe we can't afford it, but I think it would have been nice.
"It's great to see the system working and to have a situation where selection is a problem for Gareth Jenkins is fantastic.
"In my time in the Welsh team, there were a few positions where there was competition, but not like you have at the moment.
"It's bringing the best out of everyone and a lot of countries have sat up and taken a look at Wales and we have got the full respect of the other countries.
"I think it will be more a case of them fearing us now."
England have finished fourth in each of the last two Six Nations championships and endured a traumatic 2006 that ended with head coach Andy Robinson losing his job.
He has been replaced at the helm by the promoted Brian Ashton, who has immediately stamped his mark by appointing a new captain in Phil Vickery and luring another World Cup hero, Jason Robinson, out of retirement.