I think there's a discussion to be had about expanding the NRL system and getting as many prospects involved in it as possible. With that said, the Gus Gould talking point of blaming the woes of the Broncos and Cowboys on the end of the NYC is a stretch.
First off there was the more pressing matter of coaching. What transpired during the Bennett-Seibold saga has been well documented and in the case of Paul Green it's the typical story of a coach who fell in love with his premiership team. By the time he actually went out and made changes it was far too late, especially since other clubs saw the success the NYC team was having and took their best prospects.
It's also far too early to call. When Gus talks about the loss of the NYC, he isn't talking about players like David Fifita who was going to be a gun regardless of NYC football. It's more about guys like Liam Knight and Brent Naden who have been a part of various NRL systems and only started making an impact in their early to mid 20s. We're still seeing the last generation of NYC players make their debut, so we haven't had a chance to see this next generation of talent.
I don't think the NYC was a success across the board for the NRL. Outside of the Warriors and the Cowboys (at the beginning) it was just another unnecessary expense for a lot of clubs and it created far too many expectations for players. It was not good for player welfare and it rarely generated any buzz. In fact it was usually the subject of ridicule due to the scorelines.
Outside of some passionate fans who did a really good job of documenting the competition, there was hardly any way to keep track of the competition making it difficult for casual fans to care about the competition.
Again, if the NYC was so successful, why wasn't there an overflow of talent in the NSW or QLD Cup? You'd have to imagine if the competition was so successful, there would be calls for more teams. However whenever the subject is brought up the reception is mixed at best with a lot of coaches pointing out the lack of talent.