This is where it's heading I'm afraid, I can see SA just being a feeder for Europe in the near future. If we look at soccer as an example, poor countries with lots of talent, that can't compete with overseas wages tend to have inconsequential local leagues but strong international teams. i.e Argentina, Brazil, Portugal even the Netherlands.If the player drain continues and SA teams just keep getting worse and worse, I think ARU and NZRU should break off from them. Although one benefit of touring SA with the franchise teams is the newAll Blacks get a taste of what SA test venues are like.
Poor showing from the SA teams this year, I can't see it getting any better as well with their selection policy in place. But who knows, there's a large amount of players leaving NZ franchises, so it could be a lot tighter next season.
However it is a bit to early to call time of death for local SA rugby, many South Africans believe it has to do with the coaching systems more than anything else, which are changing next year. Basically we need a season or two more before we can be certain that this is a persistent problem, or just a temporary trend.