Warriors, Roosters and Manly have now decided to field their own teams, They wouldn't do this if the feeder team system worked
They would if they were being paid to change their system, and old mate PVL is giving the Raiders a grant to run their own NSW Cup side, so I can't imagine that the same isn't being offered to the other clubs.
Does it though?
Wollongong - Through Dragons
Hunter - Through Knights
Southern NSW - Through Camberra
Central West - Panthers
Central Coast - Roosters
Fiji - Roosters
New Zealand - Through Warriors
Narellan/southern Highlands - Wests
Titans cover Northern NSW
Most areas in the state have a pathway to the top grade. Take the Roosters they fund the CC competition. Penrith run academies in Forbes, Dubbo and Bathurst. So clubs put into those areas
You live in the Hunter, Would locals prefer the top clubs play in the local League or in a State Cup?
Even if we accepted that the system is working the way you suggest (it doesn't, but whatever), that just means that the top 20-30 players in each of those regions, as the NRL clubs see them, in each age group from those regions have a pathway to the NRL.
Anybody that misses out on breaking into that system is screwed, because there'd no longer be a clear pathway for them to break into the system. As such you've just retracted the sports talent pool and participation numbers by thousands. So yeah, that's a f**king stupid idea on the face of it.
Furthermore, the grassroots don't exist purely to produce juniors for the professional level, and treating them as if they do will lead to disaster, but if we are going to focus exclusively on juniors, what about everywhere outside of the NRL club's catchment?
90%+ of kids whom go on to be professional athletes could have been NRL players if RL had offered them an opportunity at a young enough age. That's not to say that every one of them would take that opportunity, but they can't take the opportunity if it isn't offered, and what sense does it make to ignore their potential and leave them for other sports to hoover up. We should be offering as many of them as possible the opportunity to become NRL players, and we should be actively competing with the other codes for every athlete in Vic, WA, SA, Tas, and the NT that they develop.
To do that you need a standardised national system that is run independently of NRL clubs, because the Raiders for example, can't even fit all of the potential talent from Canberra and Queanbeyan into their system, let alone all of Southern NSW and/or other parts of the country. The best way to go about creating that system is debatable, but that is the route we should be going, but probably never will.