You're saying the fact that the PI market is tiny means a PI team doesn't make financial sense. But the size of the PI market is irrelevant. I think as long as the team was financially sustainable it would be a good idea and help build the value of the competition (for broadcasters, sponsors etc) in Australia and NZ.
I suggested the IRB could put in some of the funding. Not a huge amount of it, but the reasons for funding would be to help develop pathways for rugby players in the Pacific. Keep in mind a PI team could have a significantly lower wage bill than the other teams. Between the PI governments, IRB and private investors with interests (or history) in the PI's, I think you could find the funding. If you couldn't, then forget about it! Why not open up a tendering process and see what interest there is? It'd be good for media interest too!
Do you agree that the Chiefs are entertaining to watch, that some of the New Zealand derbies are some most entertaining matches in the Super Rugby season... Why don't they rate well in Australia?
Il answer for you, because they don't have that nostalgic attachment to a region/province or city within Australia, they don't have a parochial attachment to the fans and thus they don't rate well.
Its easy to say that because Fiji, Tonga and Samoa have a reputation of playing entertaining rugby and that they will draw the ratings, but what is this based on? When the Wallabies play any of the pacific island teams the games are typically low rating ones.
There are teams which already play entertaining rugby in New Zealand and few Australians care, how are you so certain that 100'000 Australians are going to tune in each week to justify the admission of this team?...
As for costs, a low wage budget simply doesn't work, players will purely get poached by other Australian/New Zealand teams. Or alternatively, they will display form and get signed by a European team.. Even at a minimum, you are looking at costs of $10million/annum for running a Super Rugby team.. The IRB already pours in $millions each year, they won't be offsetting a professional club team.