That already occurs regardless of the $5,000 offered by the ARU to take part in the Academy setups and contrary to many, the budget for those Toyota Cup teams isn't significant by any means. Many of those who take up that option do so due to greater opportunities to possible move on to the NRL. However, the majority end up either in either the NSW or Queensland Cup. Some even further down in the Bundaberg Cup.
It's not always about money. Rugby has to and in the case of some Sydney clubs need to look (and have) to create similar work and educational opportunities to make staying in Rugby just as attractive as going to League.
Are you telling me that a player cannot commit to training either before or after work/school? You're kidding right. I know it can be done. I played for Randwick but lived on the outer South West fringe of Sydney. I hit the gym in the morning before school, go to school, and go to training after school. When I left school and was working while attending Uni I still managed to do it. Why? Because I wanted at the time. These guys can do it. If they ask them to train during the day then the issue is with those running the academies not the players.
The old model of the ARS certainly wasn't pathway in its original form. That's doesn't mean it couldn't be upgraded to one. If you have the Super Rugby squad members and up and coming talent fill these spots to compete as an extra development structure it would be quite strong. You wouldn't necessarily include the likes of Tas, Darwin or SA initially. Perhaps never. Same for the country Unions unless they are able to prove a case. It would prove Sydney and Brisbane with potentially two squads and one for the other cities with franchises (and their set ups) present.
As for the sevens thing, I didn't even mention the Super Rugby franchises. I said clubs. It wouldn't necessarily be all that expensive as many of the tournaments already exist. Teams wouldn't even need to travel that far. Keep them state base. Choose a possible vs probables and play them off. That way players will have to compete for their spots constantly on a yearly basis, meaning they will always be looking to improve their games.