Which isn't a problem because the goal for a lower tier comp is to create a meaningful competition with high exposure that isn't as expensive to operate in as the top tier.
In other words it's lower profile, the sponsorship values are lower, etc, but the costs of fielding a team is significantly lower as well, which means that it feasible for clubs that either aren't ready to participate in the NRL (or top tier), or are incapable of participating in the NRL for whatever reason, have a competition that they can field semi-pro/pro teams in, that also gets enough exposure to make running such a club a viable business.
You're also creating a false dichotomy where it's either expand the NRL or work on improving the lower tiers, when the NRL shouldn't be doing either or, they could and should be doing both at the same time!