The problem isn't Italy as such, the problem is there aren't enough competitive rugby playing nations in the world. Rugby has done a **** poor job of promoting itself worldwide but even just for us, rugby outside the UK and France is virtually non-existent. American football has a larger presence and viewership in many European countries than rugby does.
Italy are whipping boys and that isn't changing. The problem is everyone else who can replace them would also be whipping boys. Japan looks like a good future prospect for the game with a large population, plenty of wealthy and a league that is drawing a lot of star players. The Italian league does not do this. WR should really get it's act together and see how American football promotes itself around the world and aim to emulate that. Not the corporatism but the proper global reach and exposure. At some point rugby has to accept it cannot hope to grow whilst it stays an old boys club. One big area of weakness is the lack of a good rugby video game. Look at all major sports in the world, they all have video games to get people interested. I've never watched basketball, ice hockey, tennis etc but I've played games with all of those. I watch rugby all the time yet never played a game for it.
Europe should be an ideal market to grow the sport as there isn't really an equivalent sport it would be competing with. They've just got to get their act together and stop living in the past.
So much as I feel Italy are an embarrassment to the tournament, I don't see any team that can replace them that could do a better job, except maybe Japan but they are right on the other side of the world... Having said that, I do feel some sort of playoff is required. Even if Italy win it 9/10 times, they should still have to prove they are better than the alternatives (basically Georgia).