I respectfully disagree. If we take a very basic premise that what the ARU is trying to do is spread the game of rugby, then we should expect more player participation and an expansion of club rugby, not only in player numbers but in quality. An expanded pool of players should provide at the very least, the basis of a representative/professional team and with time, be able to stand on its own two feet in terms of player development. Now, how many local products are on offer in these 'growth' areas of the ACT and WA, bearing in mind the ACT has had a "super" team since 1996, WA since 2006 ? (Let's ignore Victoria for a moment, they've just started so let's give the VRU the benefit of the doubt). I will give the ACT some leeway in that their population is reasonably small and at least some players have come through the ranks, though nowhere near enough to sustain a local rep side. However Perth has what, 1.5m compared to about 2 in the BrisVegas connurbation? What are the returns from this generous investment from the ARU? What has been the cost per capita? Let's also consider the fact that Qld is a MUNGO state and rugby is a minority sport. By any comparble factors vis a vis the underdog minority sport vs entrenched majority sport (as with WA with aerial ping pong), Qld (and NSW for that matter) has fared significantly better in terms of not only general player participation but producing a sufficient quantity of professional players. Indeeed their ranks have been continually decimated by the expansion. So until this siuation has changed, the experiments conducted by the ARU can only ever be considered failures and expensive ones at that.
Needless to say FG, I think you make some excellent points. It is a genuinely complex matter though: Gnostic's point re a broad-enough size of the sort of 'feeder system' needed for a strong, high quality Wallabies base is a valid one, just as is Groucho's re the critical need to have genuine local rugby grassroots, club and school development systems to build the true _strategic_ depth of the code over the next say 4-6 years, and longer.
The problem (just as you comment on) we have currently is that multiple Aus RUs are neither creating excellent developmental systems that are producing their 'fair share' number of quality exportable players (to directly enrich the total Aus pool), nor are they executing the ultimate (and highly interrelated) 3 golden rules of State code success, namely: financial viability through real fan growth (and thus sponsorship $ growth), increasing $ gate receipts, and top teams that, with reasonable consistency (over say a 3-5 yr cycle), get up to SF or F level in Super Rugby, etc. Couple all this with no 3N or Bled outcomes for the Wallabies in many years. So, worryingly, there is no real Aus-wide, code-wide critical mass building the essential virtuous circles between player depth, team success, enhanced income, greater investment = greater player depth and code attractiveness, etc, etc. The modern AFL is, like it or not, an outstanding example of code-systemic virtuous circles at work, so my and your observations here are not theoretical ones.
There is little doubt that rugby is slowly losing code and sporting market share in Australia, almost exclusively as the result of poor strategic management of the code here since 1999 (or thereabouts). The tough question is what to do about this (now the down slope has gone this far), and where should increasingly scarce ARU investment $s go to arrest this decline. My own view is that radical upgrades of management (and, critically, KPI accountability) are required to the ARU and multiple state RUs, before we reach a negative 'tipping' point that cannot be reversed.
Sadly, whenever we start assessing the actual performance and strategic situations of individual RUs and such like, the vibe on a fan blog site like this equates quickly to that unfortunate moment in one's adolescence when you just had to criticise your best mate's mother's musical abilities: there are lots of immediate explosions entailed in so doing, but that doesn't mean she can play the piano.