In my humble opinion the RD/Wallabies issue is small potatoes for the CEO of Australian Rugby. I'd almost be content for the Wallabies to lose regularly this year if the ARU were able to:
1. Expand the game at junior/grassroots level
2. Sort out the administrative mess that is rugby in this country
3. Examine options for a 3rd tier
Re 1: Unless their parents are involved in a local rugby club, boys will play with their mates. In western Sydney at least, there is a local soccer or league club and most boys will follow their mates to one of these. There simply isn't a close junior rugby club in most parts of western Sydney, hence participatation ratios between league and union in western Sydney reflects poorly on union when compared with the ratio in the northern & eastern suburbs. Any sustainable and long term solution needs to address this.
Re 2: Not enough room in this post to discuss.
Re 3: We need to decide on a model, i.e. what type of 3rd tier. The French Top 14 model of a season long competition or a SAF/NZ model tacked on the end of the season or even a hybrid of the 2. What we shouldn't do is create meaningless franchises and stick them in a place for 6 weeks and expect the entire population to convert to rugby.
I'm not sure that the SAF/NZ model would work here. It would either start at the same time as the NRL/AFL finals and be deprived of any publicity or would be held afterwards, which to me is the wrong time of year to be playing rugby in Australia- too hot and running into cricket season.
I'd suggest a modified French Top 14 model starting in June. All current grade competitions in capital cities start at current time. After 1 full round; top 4 Sydney teams, top 2 Brisbane teams,top 2 Canberra teams and a combined club team from Melbourne and 1 from Perth play a 10 team 1 round competition with a top 4 finals system. Advantages: clubs already exist, complete with infastructure and admin so no need to add another layer, has an inbuilt promotion/relegation system, provides high level of competition each week - the equivalent of 9 weeks of semi-final football before the finals and runs at a time when people are in rugby mode. As with anything, it could be modified as the years go by, but it provides a relatively easy, simple set-up process.