I think you are on the money half and talks of taking 15-20 years to develop is not the thinking required by top echelons.
To change the status quo you need a disruptive game changing strategy.
In other words adopt a leaf out of other sporting codes books. Cricket beyond test level was dying with shefield shield an extinct beast, and ODI's etc at state level equally flagging.
So what did they do - they introduced the big bash which been huge success.....which created new professional opportunities.
A-League equally thought outside the square.
We need some innovative game changing strategies/approach to change rugby's fortunes.
I don't have all the answers but what it does mean is:
1. Not just recruiting old school past rugby players to administration roles in senior positions in ARU etc. Need professional sports administrators who can think outside the square and about best talent - not finding jobs for retired rugby players.
2. Need better commercial partnerships with external partners
3. We need to accept that NZ is not the benchmark for judging our professional talent as they have greater depth and our competition for professional players to recruit is not NZ but other sports in Oz who compete for schoolboys on which sport to play and league clubs who compete for schoolboy rugby players because of more professional opportunities available by virtue of more league clubs than the 5 state based Super Rugby sides.
4. We have got to get the product right for wider appeal. Here lot of work being done which area of less criticism for me - NRC rule changes, 7's focus and growth, push for rule changes through IRB etc, focus more on attacking rugby by Super Rugby's sides as focus, all part of that.
In short it is a very tough gig for rugby to compete which is why they need innovative game changing strategies which change the rules to attract more rugby fans and attract the best rugby talent, administrators, coaches etc etc. I am not sure we have the innovative thinkers who can come up with these game changing innovative strategies that other codes or companies find as not an easy task to find....but we need to find those people who can do this. As lot to market behind this as a product which don't leverage enough.
Ps yes we need to develop a national domestic competition which having a short form national competition is good starting point as agree with other comments that this is way easier said than done now we have created a super rugby product that will be superior in quality of football but inferior commercially and for longer term growth of professional rugby through just relying on this alone.