Could it be that it is US that is blind, do not know what we are talking about? Yeah, I get the common comeback like 'just because mcdonalds is most widely eaten does not make it a good meal' stuff but that is the thing that I find most interesting.
Just came across this thread trying to figure out the appeal of league myself, and am coming from a US perspective, so I'm pretty innocent of any larger rugby/league cultural issues -- because it just doesn't happen in the US (although that's changing).
For one thing, league had something like a 90-year head start when it comes to professionalism. That's 90 years of more money flowing into the sport, money which can be re-flowed into marketing, development programs among younger people, and expanding the presence of the brand. Any organization that has such a head start will benefit from inertia as well as their larger bank account and already-larger customer base.
Maybe the McDonald's comparison isn't as apt; take beer instead (work with me here): The most consumed brands don't tend to be of the best quality -- Budweiser, Bud Light, Coors, Tsingtao, Fosters, etc. A massive shift in the industry took place in the 1980's where two things happened in conjunction to carpet-bomb the bars and colleges with enough product to swamp other brands, no matter how good those other brands were:
- Massive advertising campaigns that made beer wild and crazy and fun (Spuds McKenzie), and
- Changing the formula by replacing previous ingredients with rice, carbonation and added salt, which saved money, changed the flavor, but also made the consumer more thirsty.
It all added up to a cheaper product but more sales, and with enough market share (Anheuser-Busch has something like 48% of the US market), you can overcome or buy out upstarts with a superior product but less market share and less capital.
This is what league seems to have in Australia: The game has altered its formula to be as easily consumable by as broad a market base as possible (uncontested scrums, no lineouts, five and a kick, no contest for the ball on the floor, etc.). With it's 90-year head start as a professional entity, it's been able to carpet-bomb different regions with its product to the point that a similar brand/code isn't even recognized (which may be why you didn't realize there was another code until you were older). If as I understand it rugby is still really only a private school game in Australia, that doesn't help, and it's a testament to the game's persistence that it's lasted this long (in the US, sports played primarily in private school hardly ever go pro or gain popularity among public schools -- you don't see fencing in too many public schools).
The persistence of rugby is promising, and it's probably helped by the on- and off-field shenanigans in league (although apparently a large portion of the public dig that stuff), but as long as rugby's in a four-way code-race and doesn't make itself as available to public schools as league does, I can't imagine its popularity ever really growing to the critical mass it would need to displace league as the main (and for some, only) rugby code played in Australia.