Largely agree with Spitty.
The NYC is feasible due to reduced costs. Player payments aren't as large as what would be required in a NRL Reserves competition as the players are aged between 18 and 20, and the majority partake in educational programs and train near full time with their NRL clubs. This isnt feasible for a reserve grade comp as the majority of players are older and full time workers, as the wages arent sufficient enough to warrant full time contracts.
I think the NSWRL should persevere with the NSW Cup concept and really try to make the rugby league public familiar with the competition. TV coverage, possibly via the ABC ie. Qld Cup, and increased promotion would help.