No, just means there's a void that other codes have exploited
The void was filled because other sports spent money building the game from the bottom up in these areas, whereas our game only cared about the clubs and professional players. You don't win the hearts of kids by pretending they don't exist.
Void was created by "need" to rationalize league. Clubs are self interested & will do each other in if they can, something which has been happening since the says of glebe & annadale.
Outsider's suggestion that fans simply move to surviving teams is fantasy, as game is tribal & opposition is despised. In that climate rival codes can fill void & become club of the deposed.
You are correct. The problem is there's too many small tribes in Sydney, and they're trying to compete against unified tribes from afar that vastly outnumber them. In a capitalist, dog eat dog world, most of the Sydney clubs would have bankrupted themselves into oblivion by now. The only reason they're still here is because the NSWRL/ARL/NRL adopted a USSR-style socialist system that allows the rats and mice of Sydney to sit alongside the big elephants of Brisbane and Melbourne. The expense needed to support this unnatural and frankly unfair system has deprived the game's lower tiers of precious resources needed to grow the game from the bottom up. We're now starting to see the results of this silly "Sydney first, f**k everyone else" socialist system.
The Sydney fans and admin think the answer is to keep doing the same thing and hope everything will right itself. As Einstein said, doing the same thing repetitively and hoping for a different result is insane. We need to knock down the archaic Sydney model and replace it with something that will unify the tribes into something sustainable.
AwFuL has a vaguely similar problem with its Melbourne clubs, but it's manageable because the AwFuL HQ keep them in check and the tribes of Melbourne fumbleball are much bigger and more emotionally invested in their teams.
Maybe it's time for all 9 Sydney clubs to f**k off to the NSW Cup and replace them with 4 or 5 new teams that can unify all of Sydney's RL fans, or just keep the 5 or 6 biggest clubs, throw a tonne of money at junior RL to get the next generation of RL fans to adopt these clubs, and let the rusted on oldies who are stuck in the 70s shout at clouds about Murdoch, Broncos, lack of tribalism or whatever it is that has made them bitter.