There's a thread going on PR discussing the SMH article regarding the schools review. The suggestion of a hybrid schools/clubs structure has come up. I think it is certainly worth looking at in some detail. Specifically the multi-school club that completes alongside both established clubs and schools.
Put simply, schools are the most efficient means to reaching out. Where possible, being enough numbers, kids can play with their school. If there isn't enough numbers in one school but over 3 or four they can be pooled.
Evidently this is done in Japanese Soccer to great success.
Schools are only an efficient means of reaching out when certain circumstances exist:
1. The school is willing and able to devote financial and personnel resources to the coaching and training
2. The school has sufficient qualified staff to coach
3. The school has the ability to mandate training and playing outside of school hours (by staff and students)
GPS, CAS and to a slightly lesser extent ISA satisfy all 3 criteria. State sports high schools also to some degree.
Where the plan runs aground is when you get to the logistics of training and playing. State high schools is NSW have a half day on Wednesday afternoons for playing inter-school sport. Training (if it even happens) might be at lunchtimes or before school. This depends on a number of factors - the main one being the ability and willingness of a teacher to work extra time without being paid for it. For the same reason, state schools will rarely participate in after school competitions and almost never participate in weekend competitions. Depending on the union delegate at the school in question, staff will be ostracised if they work over and above the award. Catholic systemic schools are in a similar position.
Once a team officially represents a state school there is also a mountain of bureaucracy involving permission notes and the completion of reams of paperwork.
I'd suggest that the most efficient way is to promote the game in the state schools in every way possible and then directing those players to a club which is linked informally to the school - but is a CLUB.
I don't know where the SMH are getting their information from, but they are heading up a dry gully if they think that any form of hybrid school/club competition could take place. (Another logistical hurdle being that club rugby in Sydney is played on a Sunday). If the ARU or any of its employees seriously think that they could get the NSW Teachers' Federation to work unpaid overtime, they're in fairy land and if they think that the NSW government would want to fund a massive increase in teacher pay for the benefit of rugby, when every other sport is played on a Wednesday afternoon then they are clearly delusional or so divorced from reality that it's not funny. This type of idea could only come from someone whose only rugby experience in in a private rugby playing school.