Quick, you make an error to presume that the indignant SRU and it's relationship with NSWRU and RA is "Australia".
To start with, QRU has its issues with Premier, but it isn't this. And of course there is a lot more to rugby in Australia and NSW and Q.
You have a distinctly NSW disease there.
Well, I've lived my whole life in Sydney so naturally I have a greater perspective on what happens in Sydney and NSW.
There's certainly a lot more to rugby in Australia than Sydney or NSW or Qld. But, I see what the RA and NSWRU attitude is to clubs (all clubs not just the SS ones) and I simply cannot imagine the NZRU following a similar policy the people there just wouldn't let it happen.
I'd also note that the area of Australia in which club, school and junior rugby was expanding the most was Western Australia and yet this was the province which RA decided to cut. I think we both thought at the time that this was odd.
My position is that RA should be providing support to club competitions everywhere in the country to the extent that it can. That doesn't necessarily mean direct financial support either, it could be a range or resources or support. Unlike some rugby countries, rugby isn't evenly spread across Australia so it stands to reason that a greater quantum of most things are going to go to the areas where there are the most clubs and players.
Without trying to be in any way parochial, my view is that no professional or even semi-professional sport can succeed in Australia unless it has a significant presence in either Sydney or Melbourne. They're the two biggest cities, with the most people, infrastructure and access to sponsors. Whether some people like it or not, in Australian rugby it's Sydney and the game can't succeed elsewhere in Australia without a significant presence in Sydney. That's not to downgrade any clubs or competitions going on elsewhere - we need all of them as well. The more of them which are successful, the better for everyone including Sydney. It's why I've only suggested two teams in Sydney for a domestic professional league and tried to locate teams as far as possible right across the country - including a Fijian team playing out of Townsville, a Tongan team playing out of Campbelltown etc.
If we look at France for example, we see a combination of these factors at play - most of the clubs and players in France are located in the south-west quarter of the country so most of the money and resource goes to that area. But the French also realised that they needed a presence in Paris because it's the biggest city with the most access to big companies, sponsors etc so they have always ensured a Top 14 club was in Paris even when that team struggled years ago. It's why they got Racing back into Top 14 so there are now two Paris teams in their top league.