Part of the insularity and lack of development must be because there isn't much competition here. If the Premiership manages to start a competition in the US, would that extra attention give USA Rugby a kick in the tail?
I think the bigger problem at hand is that USAR just constantly fucks up or gets in the way of a viable Elite-Level competition forming.
I'll never forget the other year when USAR tried (or may have even successfully done, ironically this is the part I can't remember clearly) to make the two West Coast qualifiers (I think one was from California and one from Utah) play their playoff game in fucking Texas. This would be like having the top two club sides from Queensland drive out to Darwin to play one another.
The Pacific Rugby Premiership launching and having a successful season was a good step in the right direction this year - a step taken independently of USAR.
I think the PRP model is the immediate future as one of the biggest and most common headaches you're going to encounter with any Elite-Level competition in the USA is the sheer size of our geography. Focusing the competitions into a local/regional model for the time being guarantees a much higher level of competition because you aren't throwing teams in to balance a division, etc and teams who have talented squads but not the most resources aren't screwed by a ridiculous travel schedule (also works out much better for the guys considering lots of them are professionals, dads
and high level rugby athletes).
The game has been growing and growing seemingly in spite of USAR the past few years but the Eagles (7s and 15s) being on fucking rollerskates at the moment is not helping the cause at all.
The other issue seems more to have to do with a piss-poor national recruiting structure (for 15s mainly, 7s has it down a lot better but there's a much smaller player pool to deal with and a more settled competition structure) that just does not do a good job of identifying talent or utilizing it either.
The reference to Kingsley McGown that @Workingclassrugger made is a perfect example of this. I even know Kingsley by face and name and I really don't follow West Coast rugby closely. He's been one of the best back-three players in college for years (as well as one of, if not our best U-20 player in 2012) but still hasn't even gotten an invite to an Eagles camp as far as I know.
I know that resources play a role in the recruitment process (especially with aforementioned geographic scale at play) but from what I've heard about the recruitment process it's just as much a failure to effectively marshall current resources as it is an acute lack of them.
I don't know enough about the legal implications and relationship between USAR and the IRB but the very least that needs to be done to fix things is a massive overhaul - starting with the inner offices of the USAR headquarters in Colorado.