As Great Dane more eloquently put you are in effect limiting the entry point for players into the NRL. That’s the problem.
Look at the current system in QLD Cup. You can also compare to other systems where they don’t have a ‘reserve grade’ if you want (for example the Yankees don’t have a reserve grade side) What these systems offer is the opportunity for players who aren’t contracted to prove themselves against blokes who are contracted or affiliated to major or first grade sides. That means an opportunity for individuals who aren’t stars when they were juniors (not everybody develops at the same rate for example). Look at Royce Hunt as a case in point. He wasn’t contracted to a club until what 25 and only after proving himself for a number of years for the Mounties. In a system that is being suggested - if somebody is not picked up when they’re 19 or 20 it is not like they are going to sway clubs to pick them up when they are playing against other amateurs.
Secondly, look at the maths of it as well. You have 17 under 20 competitions and reserve grade sides - think of the probable churn of players in this scenario. Clubs are in essence going to be forced to make decisions on players by the time they are 20 and then where do these players go? It makes no sense to cut off players by the time they are 20 or 21 when you are wanting to increase the talent pool.
Lastly, how does this help regional football. You are essentially forcing kids to make a decision to move from regional areas to Sydney or Brisbane before they are emotionally and intellectually capable of doing so. People want to go against the draft idea (and I’m not a proponent of it either) because young people are being forced to move to whatever area but at least in a system like that they are getting drafted after they are 18. This to me seems a lot worse and you know clubs will be scouting kids at a younger and younger age (you see this in soccer for example)
Btw that’s also not the choice being offered. It’s not like it’s only a choice between playing for the Knights reserve grade and say Wests Newcastle, South Newcastle or Maitland.
Panthers are a good example because they won everything.
They used 43 players in Flegg
41 in NSW Cup
They called up players from Ron Massey Cup, 2 of those guys are on Train and trial deals, One of them at 31.
Kurt Falls debuted at 26, Didn't play junior rep but got his start through good performances in Ron Massey Cup
There are guys from Ron Massey Cup in the WC, So they are getting spotted later
Burton
Martin
Yeo
Wighton
Latrell
I am sure there are others currently playing the highest honour the game has, All from the bush under this 'flawed' system
As for Kids moving, There are clubs now flying kids interstate or from NZ to play junior rep on Sat.
Those kids would be moving likely anyway, That is the where the big schools are.