I agree that options for players are important.
I agree strongly on the importance of the Emus being back. Critical to have as many clubs to lift participation numbers.
I disagree about your point about location being a driver.
If that were true, Emus and Two Blues would be two of the strongest clubs in Shute Shield over the last few decades. The struggles of Penrith are well known. Two Blues import talent at a rate of knots. Why?
The fact is, talented kids from western sydney rugby are often poached by bigger clubs in the eastern suburbs and northern beaches. They have access to bigger programs with more money behind them. The dedicated parents will do everything they can to help make this happen, as will the player once they can transport themselves.
However, those rugby programs have low ceiling compared to NRL; they can't offer a 16-17yo kid the incentives that Penrith or Parra could gamble on a prospect who they know might burn out or suffer a career-ending injury. The conveyor belt is wide for NRL, and their hierarchies are well organised.
Rugby's alignment simply isn't there. Otherwise we'd have one Union across the Sydney basin with pathways established and resources directed appropriately. Every club would have defined relationships and resource alignment and we'd figure out the schools dichotomy.
Lastly: the growth you reference is not from places that are traditionally aligned with rugby, league, or AFL. I know, because I'm in one of those growth areas in the northwest. If I wanted to start a cricket club or basketball league, it would be a lot easier than any contact sport.