Both sides acted out of self-interest rather than the long-term growth of the game.
Yeah, it's obvious that News Ltd wanted a South-Queensland monopoly for the Broncos (bye Crushers & Chargers, despite the Chargers being on a great track at the time), the TV rights (got 'em!), and reduced costs (No Adelaide, no pricey travel that a Perth team meant at the time), and reduction to 14 teams... and they got a team into Melbourne - the AFL market they *really* wanted.
BUT the ARL didn't seem to fight for Perth & Adelaide (Sure, they were Superleague teams.. but still strategic expansion right?)... Nor the Chargers or Crushers (The two Queensland clubs that WERE loyal).. maybe the thought was "Hey, looks like we're gonna have to get down to 14 teams.. so the more of these teams we can let-go, the less we have to crunch-down on our loyal Sydney clubs?"
But as you say.. that's going off on a real side-track there.