Sure it does.
I'm in Wellington.. so I'm lucky if I get the chance to go up for *one* game per season (time off work, family commitments, money to travel & stay away from home etc).
If the NRL were to put a team in Wellington, I'd be a member right away. They'd be MY team.
So from my perspective, to see Sydney fans get in a lather about losing an NRL club or two when A) there's already 4 (give or take) games in Sydney per weekend, and B) their old club would still play plenty of "away" games in Sydney if moved somewhere else, seems a bit privileged, when Brisbane (The 2nd biggest league city in Australia) gets an NRL game every two weeks, Perth (the best Affiliated State capital) gets maybe 2-3 per year, and some NZ cities get ONE if we're lucky.
But the thing is, it's rare to see cities so un-evenly represented in competitions.. AFL and NRL are quite unique in that regard.. and it surely can't be sustainable.