Super League affected the ARL's original plans. The ARL wanted to become a national game - and rightly so - because that would ensure the game's long term survival. So they expanded and then in time the plan was to offer incentives to struggling Sydney clubs to relocate outside of Sydney. So you'd have a 20 team comp still but 3 or 4 clubs would have located. Again all hypothetical but you would have had say Central Coast (North) Bears, Brisbane (Wests) Magpies, Adelaide (Balmain) Tigers and Melbourne (St George) Dragons -- or something to that effect, leaving 7 or so remaining Sydney clubs. All the clubs would have survived, albeit in different locations.
But then Super League happened and that plan all went to hell. And in the post-Super League era, News Limited were basically a**holes. The thing is - they could have kept almost every single club. News Limited are a massive organisation with deep pockets. I mean, ditch the Hunter Mariners and merge or cull one other struggling club. They could have had 2 conferences of 10 teams, similar to the NFL merger. And I think the game would have bounced back quicker under that scenario.
But News had gotten what they wanted - the rights and ownerships - so they could then just do the rest cheap and didn't want to waste any more money on something they already controlled, hence the desire to cull unprofitable clubs and streamline the competition. And so teams that were struggling scrambled to find anyway they could to survive. So we got some very hastily arranged marriages. But with better management, that could have all been directed from the NRL down, instead of leaving it up to individual clubs.
Anyhow it's all moot now. Kids growing up today have no idea that it even happened.