Chip Kick I will try to answer your second question first. There are potentially 9 schools that could play in the 3rd XV comp.(1st XV from TAS, Grammar & High; 3rd XV from Shore, Joeys, View, Kings, Scots and Newington). I understand that Newington a couple of years ago agreed to drop out of the comp, mainly due to player depth (but it also left 8 teams and avoided a weekly bye). Black & White or Quick Hands could confirm this. In any case I think it is a shame because a school does not get stronger when they are not playing in a competition.
I would also like to boldly suggest that your initial question is more complex than indicated. You have said that "schools who are recruiting should play each other". Really? I am reminded of a remarkable player in the Shore 1st Basketball team this year who is also in the Australian U17 team. It's a lot more complicated and an issue not easily solved.
Guidance and clear policy from the AAGPS would assist greatly in this regard.
OK enough from me. Back to the rugby.
INP.