I think this is a pretty interesting idea and even if they get it wrong, hopefully it will force the ARU's hand and maybe give the Australian Rugby Union the kick up the arse that it desperately needs.
First and foremost, I think that the ARU, in conjunction with the NZRU, should be directing available funds towards setting up a 10 team trans-tasman U21 competition to be played during the super rugby season. This would provide young players with a clear pathway to super rugby, like the toyota cup does to NRL.
I believe this is crucial to development in both Australia and NZ, as more and more every year we are seeing the cream of young talent being picked up by league clubs who can offer a
better development pathway to professional sport than pretty much any club in australia (bar a couple) can provide. For young players it is not so much about money, but rather opportunity, and in a competition like the one I have suggested there would be opportunities galore.
However, there is defiantly a hole that needs to be filled after the end of the super rugby season. The proposed 8 team competition is interesting, however I believe it will lead to a system of have's and have-nots, as aspiring professional players will only choose to ply their trade at clubs that compete in the competition.
I think a better system would be to retain a similar format as the one suggested, but instead make the basis for team qualification final ladder position in that years club rugby. This would require the club competitions to start earlier in the year so as to be finished in time, but this is not really a big deal as not many 1st graders still play cricket in the summer.
I would suggest maybe have the top 4 or 5 teams from that years shute shield, as well as top 3 or 4 teams from the Queensland premier rugby, and maybe in time they could also include the winner of the ACT and Victorian comps. For logistical reasons I think it is unrealistic to include the winner of the WA comp until the competition is well established.
I think if they did it this way it would be a win-win situation for both the ARU, the clubs and the competition organisers.