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They do now. One of only two teams who could break the mantra that Australia will walk this tournament and they're no chance. It actually reduces the competitiveness of the World Cup. If winning the trophy is the "competition", and ultimately it is, this reduces the chances of more teams being able to compete for it, because instead of three reasonable hopes it pretty much limits it to two.
Kind of agree with this. Having strong tier 2 nations is great, but having NZ drop back to a tier 2 nation would be horrible for the tournament. We need more teams who can win it, not less.