I can't agree with this. NSW can't draw a crowd with one team, how would they go with two?
That's obviously an oversimplification, but the 'base' out there is just not big enough to sustain a pro team. Perth and Melbourne had serious financial backing, with a population at least on par with Western Sydney. And they had some rugby pedigree, I'd argue just as much as Western Sydney.
Sure there is Parramatta and Penrith, a few subbies clubs, but none have ever been powerhouses.
Best case you end up like GWS Giants. A decent team, small but passionate supporters, but never enough to really ever succeed in a way that other traditional clubs have.
The way I see it, the more 'exclusive' rugby remains, the faster it will die. I think you are underestimating the capacity for Rugby support in Western Sydney (assuming we can successfully change it's image).
I also think you are overestimating the size and reliability of the 'base' in the East and North. The GPS school support, where the majority of our base historically came from, is diminishing (rapidly IMO).
You have to ask why the Waratah's can't draw a crowd? Is it really because there are no rugby supporters in NSW? I seriously doubt it. I have heard a thousand anecdotes about how 'this' person enjoys rugby but hates the Tahs etc. Yeah anecdotal and not hard data - but the Waratah's have an image problem which extends far beyond their poor performances of late.
Who's to say a team with broader appeal and no historical bias built into it's DNA won't have broader appeal? in fact, I think it almost certainly will.
In the medium to long-term future, Rugby needs to find a way to engage all of NSW or it will die. And given the state of this shitshow I don't see the harm in rolling the dice.