I agree with you Melts - it's just grandstanding. We gave up our right to complain when we took Murdoch's blood money to merge. Who knows though, the NRL might just sling em a bit more dough to shut em up. If so it will have been worth it.
I don't know that a Sydney based conference would be the weak one though Melts. Sydney is a BIG place compared to the rest of Australia (Melb excluded, but they don't count in the League scheme of things). Most of the problems Sydney-based clubs have faced recently were contrived by people with an ideological agenda to cut the number of Sydney clubs. If they had all been left to their own devices they mostly would have been fine. It's been the expansion sides (excluding Brisbane) that have needed the leg up to compete with them.
The country has a population of 20.3 mil. To League though the real pop is NSW and Qld, with dribs and drabs (hopefully growing) everywhere else. Qld has a population of 3.9 of which Brisbane makes up only 1.8 mil. Gold Coast has 0.5mil. Queensland has a Gross State Product (GSP) at around 90% of the National average. In other words the Queensland economy is smaller per head of population than the national average.
NSW has a much more concentrated population. Sydney is 4.2mil out of 6.7mil with Newcastle just over 0.5mil and Wollongong 0.3mil. Canberra is about the same as Wollongong (bit bigger). NSW's GSP at about 105% is easily the biggest of any state (only the ACT and NT have a higher rate). NSW is the powerhouse of the Australian economy. Unlike Qld which has a comparatively stronger mining and agricultural economy (meaning Brisbane isn't as important in that state's economy) Sydney is where it is at.
So of the actual rugby league population Sydney has 40% of the rugby league population, and conservatively 42% of the economy. If you discount all of the small regional areas that are obviously never going to be able to support a team these figures become more like 55% of the population and 57% of the economy. So the expectation that Sydney can and should support half of the teams in the competition is far from unreasonable. If the areas of Sydney that have been denied a full time team through mergers and culling were anywhere else in the country people would be screaming blue murder and with good reason.
I'm all for the Gold Coast having a team, and think in time Brisbane should be able to support a second side as well, but 4 would have to be Qld's limit. No one though should delude themselves that Sydney needs to cull it's sides for the health of the game. Quite the opposite is the case.
(all stats from the Bureau of Statistics
www.abs.gov.au)