Yeah but I think the NRL needs to show some leadership and think about what areas of Sydney need an NRL presence and gateway. Western suburbs of Sydney is a hugely growing area and so there must be a good presence there. Are Canterbury and Parramatta enough if Wests Tigers go? Not really, they'd have to extend their catchment all the way down to Campbelltown.
The Balmain area's probably dead and buried for family growth.
Easts and Souths are probably similar, very little opportunity for population growth really.
St George-Illawarra and Cronulla compete for the south-east of the city, as well as Canterbury to a degree.
Manly have the entire north shore and so must remain regardless.
Penrith has to stay as they are.
If it were up to me, and it's not, the Sydney clubs would be:
Sydney Roosters (inner Sydney, west, south, east and north) - SFS
St George-Illawarra (covering South east all the way to Wollongong) - WIN Stadium and Kogarah for crap games
Penrith - Penrith Stadium
Parramatta (west and north west) - Parramatta Stadium
Canterbury (west and south west, including Campbelltown) - Campbelltown and ANZ Stadium)
Manly (northern beaches) - Brookvale
The others: Wests Tigers, Cronulla, South Sydney...well, relocate or die.