Do the club and school pathways lead to different places?
In most sports yes. The school pathway ends with a presentation night, nice plaque, a certificate, perhaps some cake.
Club pathways lead to National representation in that chosen sport or an NCAA scholarship (or both).
There are some exceptions (and I'm very glad that there are exceptions):
Cross Country - both school and club pathways converge at the national championship. Most states permit the school pathway to take "first dibs" at their athletes when compiling their school teams whilst the U18, U20 and Open brackets are dominated by club athletes.
Touch Football - School and club converge at the National Youth Championships. NSW sends 3 association teams (CIS, CCC, CHS) and a NSW Touch Football team. Queensland do it a bit differently with one school team (QSS) and then the remainder go via the regional association team. National teams picked based upon performance at this event and systemic tracking of players through their state bodies.
And now it would seem - boys Rugby (and I never thought that would be possible and I wonder how much fantastic leg work was done by people behind the scenes to get this deal across the line).
Edit - there may be other sports too that I'm not aware of
I fully support sports controlling the junior player pathway for as much the same reason as I fully support the education system writing the school curriculum. Each has a role in supporting the other but when they're set up in opposition to each other, the development of the players suffer and as a consequence, so does the sport.
I used to be able to argue the point that nobody was ever selected for a National team based wholly and soley upon a school only approach to their chosen sport - Rugby used to be the exception. Even then, you could argue that for a lot of internationals who attended independent schools, they got their grounding in the sport at a local park level long before they went to high school.
How it goes in practice remains to be seen - it's early days yet and I'm sure there will be some kinks to iron out. But a unified junior player pathway directed by industry specialists should be the aim of every school sport and I'm glad everyone in this space in Rugby now appears to agree with this assertion.