Thanks, TBH I didn't know much about the Super League war and hadn't considered it in my thought process. Re: the advent of professionalism, Australia were still good enough to make the 2003 RWC final and managed albeit truncated) an (albeit truncated) Tri Nations win as recently as 2011 though. I think it's fair to say that the strength of the national side has been in decline since the early 2000s though.
On the other hand, it seems strange that the ARU find themselves worse equipped to compete with league and Aussie rules now that they're able to offer payments to players like the sports that they were successful in competing with did. Maybe this says that resources were being used better (investment in development / marketing?) in the amateur days, not that it would be feasible to return to that model.
It's not that odd when you think about it - Australian Football and Rugby League have dominated Australia's two biggest population and cultural centres (Melbourne and Sydney) for 100 years+ years and they've been professional pretty well the entire time. Rugby has been about in its enclaves in chunks of Sydney and Brisbane, but it's underlying developmental infrastructure has never been close to what the NRL or AFL have here. What's more, both those competitions have 16 and 18 teams and a tonne more TV money, meaning they have a heap more developmental pathways for eager players. Meanwhile, Union stated off with 3 pro teams, grew to 5 and couldn't even handle that, so they're back to 4.
The problems with Rugby is manifold in a brutally competitive sports market like Australia's, but in a funny sort of way it's greatest strength - it's international appeal - has probably hurt the game in the long term. This isn't anything to do with the Wallabies though; it's super rugby. Super Rugby being split across 3 continents initially and then 5 puts it at a severe disadvantage to the NRL and AFL when it comes to keeping the public interest - especially considering Union has been exclusively pay TV only (apart from Wallabies tests) here since its inception.
Why? Because half the games are on in the middle of the night, leaving SR a grand total of 2 days to garner prime time viewers whilst the AFL and NRL dominate the airways with their free to air TV product that is on prime time 4 days a week. It's because of this that local broadcasters have been progressively spending LESS on Union here, whilst they dish out ever more for the NRL and AFL.
If there's another major nation that compares to Australia, it would be Ireland given the popularity of GAA, but I don't know enough about the sporting landscape there to know how valid this comparison would be.
It's not quite the same... In Ireland, you've got the GAA with hurling and Gaelic Footy, but it's all amateur and not on the scale it is here
Sydney has 9 NRL teams, 2 AFL teams, a Super Rugby team and 2 soccer clubs. Meanwhile, Melbourne have 9 AFL clubs, an NRL club, 2 soccer clubs (that play in the summer to be fair) and a Super Rugby side. Add to that you also have the Big Bash League in cricket, which creeps into the footy code preseasons.
Both markets are saturated with sport in a way that nowhere in Europe is to my knowledge.