You make it sound like this is bad. Don't understand why anyone hangs their hat on this. What matters is NRL competitiveness, making finals, and ultimately, NRL premierships.
An NRL club has zero input in 12yo Johnny playing at a local club in their NRL catchment. Fark, Roosters have one or two clubs in their district. But they have been one of the most dominant NRL clubs for more than two decades. Right now their roster is Tupou, Toia, Billy Smith, Savala, Walker, Radley, Watson, Collins, Wong, Whyte, Marky Mark, etc. They've all made their NRL debuts with them. Nothing stopped opposition clubs identifying them in their development years. Roosters did, and turned them into good NRL footballers.