The overwhelming majority of South Africa isn't interested in rugby at all, and I've always felt England doesn't perform as well as they should at union because they are spread so thin in terms of all the other sports that they pour money into. This isn't an issue of sports saturation.
The problem I have with league and 7's is that the games themselves lack depth, if every game has 10 tries it becomes tired. "Exciting" rugby is all a matter of context - if every game in super rugby had 8 tries it would soon become the norm and games that would stand out were those with 15 tries. Rugby is a thinking game, with lots of rules, angles and methods of playing, because of this it can be very intimidating for new viewers, it's not something you can just watch and enjoy (like soccer) meaning those who do enjoy it where either raised on it, or forced themselves to watch until they enjoyed it.
Brilliant tries are so special in union because they are so difficult to pull off, if they happened often they would lose their appeal. Union will almost always be a niche sport because of it's barriers to entry but it rewards those who put in the time by being the most interesting and in-depth sport there is. In other words if rugby changes too much to make it more palatable for the new viewer it will lose what makes it special.
Anyway it's nice to have an Aussie who consistently posts so I'm in no means belittling your opinion, just trying to inform you on why we like union as it is.