I think that comment is an overstatement, yes the competition and structure in which which the teams participate in is a disaster, however the teams themselves; the staff and the employees which work for those teams and provide the administration aren't a disaster. Yes there is area for improvement within all Oz teams, that doesn't mean they are the equivalent of a club rugby team with no professional experience though.
It is the structure that does not work, its like driving a rally car in a road race. The quality of staff are there no doubt, but they can't achieve something the structure will never accommodate and this is what leads to self interest.
But its the definition of a club, whenever we talk of a domestic structure then immediately people think of some amateur suburban rugby club.
We essentially have 5 domestic clubs already, if we move to say 8 then you try to accommodate 3 other clubs joining that group.
Say Randwick (just as an example) decide they want to join, they have the financial backers and support growth projections making it viable, then they can be added.
The biggest hurdle is putting in place the competition structures and governance that allow for the competition to hopefully survive and grow (and there are good governance examples all over the world to look at).