Yes, but then the NRL should put their money where their mouth is. Allowing the likes of the Roosters to operate a very small junior competition with no responsibility to help expand the game as you described.
St George Illawarra should take a leaf out of Penrith's book and buy up all of the leagues club's in the Illawarra districts and then offer selected players school and sport scholarships extending/renewing all the way through their tertiary education (academic or trade). These scholarships also include funding for the early rugby league career with regards to uniforms, professional coaching, body fitness and development, a good dietary program and if/when selected, support when representing the districts Illawarra or St George.
Other NRL clubs wanting to recruit our juniors under scholarship would have to pay a termination fee to the SGI Junior League.
In addition the NRL should compensate SGI and other junior development clubs for their services provided.