Whither the House of Lords?

There has been much press about the reform of the House of Lords and where the supreme law of our land lies now that Blair has disempowered the Lord Chancellor but not yet established a Supreme Court. The general consensus is that our law has already been made subservient to the European court of Justice and that any ruling passed here could be over-ruled by random individuals in Brussels. If that is so, what is the point in establishing a Supreme Court here? Or is the answer in its name: it will be unassailable by Europe?
I confess to being a traditionalist and would prefer to have an appointed rather than an elected Lords. I suppose there will always be allegations of corruption in the case of an appointed House and the present Government and the police have dramatically muddied the waters with this very long drawn out cash for honours scandal. The fact that the Lords which is supposed to keep the Commons in check, is being tainted and forced to fall on its sword by the actions of the Commons seems to me to be unconstitutional but ironically there's no obvious court for it to appeal to except the European court. I am no expert in law, let alone ecclesiastical law, but it strikes me that one solution could be to appeal to the Court of Arches, the ecclesiastical court in St. Mary-le-Bow church. Could anybody enlighten me as to whether that would be feasible or make any difference at all?