I think the Red's victory last year shows how Eddie's comments are just sensationalist trying to grab the spotlight but when you look deeper into it, are a load of shit.
The Reds championship team last season, was a result of talent being spread out, yet they still won a championship with that team, which also had the lowest player wages of all Australian franchises. So you can't accuse them of harvesting good talent. Despite being schooled or originally playing in QLD the following players played for other franchises (disregarding players overseas) yet the depth was there to replace them:
NSW
Berrick Barnes
Brenden McKibbin
Drew Mitchell
Ben Mowen
Force
James O'Conner
David Pocock
Richard Brown
Nathan Sharpe
Brumbies
Stephen Moore
Rocky Elsom
Rebels
Rodney Blake
Laurie Weeks
Heath Tessman
Richard Kingi
Julian Huxley
Now obviously as market forces and opportunity dictate, not every player on this list would have been wearing the red jersey last year. Some had already been at other franchises (Huxley, Mitchell). However, without the expansion it's highly likely Mitchell, O'Conner, Pocock, Brown, Sharpe, Weeks, Kingi and Tessman would have been at QLD. The point is despite this thinning of talent, there was enough depth to build a championship team based mostly on unwanted or unrated players (Fainga'as, Beau Robinson, Radike Samo, Scott Higginbotham, Ben Daley, Ben Lucas, etc.). So yeah the depth is there, not to have 5 teams knocking on the door at the top of the ladder but for fucks sake, how have the Lions and Cheetahs been historically. Pretty sure it's been propping up the base of the ladder. How are the Blues going this season? 1 and 5?
Currently we only have capacity for 2 sides to challenge finals. Prior to the Stormers resurgence the last 2 seasons, that's where the South African sides were though. Similarly there is only really 2 outstanding NZ sides regularly. Last year it was the Blues and the Crusaders. This year it's the Highlanders and Chiefs (though the Hurricanes are probably pushing my argument there).
One of our teams won it last year, another got the spoon. Australia isn't exactly Robinson Crusoe in that regard.