While we don't know all the details, i think the most important thing about this proposal is the number of teams- 11. It isn't desirable for any new league to have an odd number of teams, it creates problems with scheduling and makes a bye needed. Also the make-up of the districts seemingly aren't the greatest, North shore and central coast together after the northern Eagles disaster? Sutherland, st george and bankstown together? Would it not of made sense to keep these districts separate and just have 14-16 teams? To me it seems that there was a deliberate attempt to make it 11 teams. This will mean it lines-up with the 11 nsw clubs in the NRL. It helps that the majority of the platinum districts already line-up with nrl clubs.
What we seeing may be a major reform in junior development. Currently it's at the mercy of the nrl clubs. Some prioritize development over others, some can't afford to invest in juniors meaning theirs no chance of expanding their programs and in some cases they're cutting back. Some areas are at the mercy of deals with nrl clubs as feeder clubs, these deals are usually short term and have a history of ending abruptly, while other areas are completely ignored. Development in the Hunter region is tied into the sucess of the Knights, and there's no consistency, but if the nrl controlled the development in all areas of new south Wales it means their future is secure.
There will be early problems, some clubs will lose some of their development areas, others will gain areas, some uneasy alliances will need to be made (north shore and central coast for example) and initially the clubs will feel plastic, but in the long term this may turn out to be a great development for the nrl in new south Wales.
Any plan that keeps young players in the bush and stops the drain of young players moving to sydney because they think that's the only way to chase their nrl dream is great for bush football.
I can understand why someone like Gus Gould would hate this idea. Penrith are one of of the clubs who have invested heavily in junior development and were hoping that investment would give them a competive edge, and this idea, that means no area will be neglected and all areas will get the help means they lose that competitive edge, while clubs that are have neglected their junior bases will basically be getting a free kick from the nrl.