As far as a concept is concerned, it's largely irrelevant.
I think it was Dan Hannerbery during the broadcast, who mentioned AFLX was an important development for the game in the Northern states, as it allowed local rugby grounds to be utilized to accommodate the growing participation rates amongst juniors. I see his point.
If looked at strategically, these local juniors then go on to be potential academy selections for the Northern clubs. Realistically, local junior development/ Academy access is the only way the Northern clubs can be self sustaining , long term.
Take a gander at this http://www.sydneyswans.com.au/academy/about/talent-search
The International appeal is a smokescreen in my opinion, maybe some great travel junkets involved, and a strategy to actively grow the game organically in the North rather than financially throwing unsustainable amounts of cash at the problem gets my tick.