No one is suggesting that "politics" has been eliminated, and I am fairly sure that the NSW, QLD, and Barbars connections will be lobbying hard for as many of their squad to be selected for the Gold Jumper as is possible. Don't underestimate the lengths that some parents, player managers, and other interested parties will go to in support of their charges. You just need to look at the endless banter on the respective Super Rugby Threads and the Wallaby Watch threads to see how divergent opinions are about who are the best 23 players for the respective squads. The NSW folk on here only get to see the QLD players in action at National U16's (now discontinued) and National Schoolboys championships, those who make Australian Schoolboys, and the few who get on the TV for NRC teams. The QLD folk that don't get to make it to Riverview see nothing of the NSW, Vic, WA or ACT players unless they make schoolboys or they travel to Sydney for Nationals, or the players make it to the NRC. It is part of the human condition that you will advocate for what you know and see, so in the absence of any evidence to the contrary, a WA supporter seeing a WA player absolutely tear it up at the Southern States U20 championships on the back of sound performances in the WA Premier rugby competition will firmly believe that player has a bloody good shot at a Gold Jumper. Substitute other the names above for NSW, QLD, etc and similar applies.
It is chalk and cheese comparing how the national U20 squad was selected prior to 2014 to how it is done now. Previously the team was selected based on performance at 3 invitation only selection camp weekends. Warm up trial games to confirm skills and abilities in a tough game environment were almost non existent, and many were selected on the strength of their previous scrapbook, and ability to demonstrate the precise skills that they were being taught and endlessly practicing in their rather exclusive academies during the weekend selection camps. In saying that, players with impressive schoolboy and Koala Club scrapbooks like the Liam Gill's, Luke Jones's, and Finger bros of this world were always going to be selected for the U20s. The process was still shrouded in Masonic like secrecy, with the lad who didn't have a full schoolboy scrapbook not getting much of a look in.
Adrian Thompson seems a fairly up front and honest sort of fellow, and one can only guess that he has issued guidance to the respective State and territory Selectors on how to run a transparent selection process for their teams. He seems to be interested in getting the best young men in front of the Clipboards, not the best scrapbooks. While QLD and NSW have probably had a greater ability to cast a wide net at the initial stages of the selection process, all the big stakeholders started the 2015 process with large training squads, narrowing the numbers down over time based on performance and attitude at training and in trial games. Having seen the composition of the initial NSW train on squad, there were plenty of "unknowns" who were given a chance to impress Rappy and other selectors. Those cut will be returning to their clubs the better for their time in the train on squad, and they are no longer Nigel Nobodies. Current form, performance, attitude and potential seems to have driven the NSW squad selection process, with some incumbents and others with rather impressive schoolboy scrapbooks being cut, and some late bloomers being included.
I agree with @insight that there will always be some missed talent. Some young men with potential have missed out due to injuries at critical stages of the selection process. Sh!t happens, just ask Daniel Carter. Some very talented players who would be an automatic run on selection elsewhere will be stuck behind an even more talented player in their position, a la the Chris "Anthems" Whittaker and George Gregan scenario.
Based on the limited exposure to players that I have had, I think that some of the NSW players cut may have been hard done by. I make that observation in complete ignorance of seeing them perform at training and in trial games over an extremely extended period that the coaches, advisors and selectors have had. It is all too easy to remember the awesome performance of Athlete X in rather one sided Schoolboy game, reinforced by a similar performances at on Day 1 of National Schoolboys when their team thrashed their opponents, and in another couple of easy Colts 1 games after they leave school. Tim Rapp and Co have seen these athletes on a very frequent basis and under pressure, and they are very well placed, and far more qualified than most keyboard warriors are, to make an informed decision on who should be in the final squad. Unlike the keyboard selectors, they have a huge vested interest in selecting the best players to execute their game plan to compete at U20 National Championships. These guys are professional coaches and future coaching positions depend on the performance of their team. I could almost guarantee similar applies to the Queensland and Barbarian squads.
All that being said, it is my uninformed view that NSW will win the tournament comfortably and get at least 10 players in the National Squad.