In some ways I think the best thing for Australian rugby would be for super rugby to be just Aus and NZ and for SA to have their own comp. For many reasons that can't happen and would bring its own problems.
I think the problems rugby has won't be remotely solved by cutting one team.
If an ANZAC rugby competition replaced Super Rugby, there's a fair chance there'd be more than just 5 NZ teams - the depth is there, and it helps to fill TV schedules.
Taranaki (national championship 'Mitre 10 Cup' nickname the Bulls, amber & black) and Hawkes Bay (Magpies, black and white) were eyeing up an expansion spot in Super Rugby before Argentina and Japan were chosen.
I doubt they'd use their M10 Cup identity, as all our current Super Rugby teams have different names and jerseys from their M10 Cup bases..although they do draw their colours from those unions.
It's tempting to think another Auckland-based team may be in the mix too.
How about this...?
Blues (Navy blue, Light Blue, White) - Based at Eden Park - North & Central Auckland
Jets (Orange, Black, White) - based at Mt Smart - South Auckland, including area around the airport
Chiefs (Red, gold, black) - Waikato/ Bay of Plenty, most games in Hamilton, 1 or 2 in Rotorua or Tauranga
Bulls (gold, green, black) - Taranaki/Manawatu - Most games in New Plymouth, 1 or 2 in Palmerston North
Magpies (Black & White) - Napier
Hurricanes (Black & Gold) - Wellington
Crusaders (Red and black) - Christchurch
Highlanders (Blue, gold & maroon) - Dunedin, some games in Invercargill.
That's 8 NZ teams, add 4 Aussie teams & you have a reasonable 12 team competition.