I wouldn't say the suits (if by suits we are referring just to the WRU) are the issue. I know the WRU cop plenty of flack, but they are doing well. WRU have been announcing profits and our national side has improved immensely over the past 20 years. At the regional level, the suits are indeed an issue. Perhaps the biggest problem is lack of quality coaching. Name me one Welsh coach with proven success. Our best coaches (Henry, Gatland) have been imports. We have had countless failed regional coaches (Lyn, Phil, Holley/Johnson, Dai Young, Turner, Kingsley, Darren Edwards, Burnell, Nige).
The other issue is the holdouts. Everybody hears of the 'golden era' and many still bask in the glory of it. We hear of the RFC days and all that. Things, however, have changed. Look on the Pontypridd facebook page, it is full of deluded fans. Someone needs to show me exactly how Pontypridd are going to make money and be successful if all the other regions are failing. We don't have the player/coaching/financial base to support five clubs (arguably four).
As I have said, it will take a new generation, one that has been raised around the regions, for it to actually become accepted.
The whole mindset has to change. For years we lived off 'As long as we beat the English'. It was so dire that any narrow loss was something to be pleased about and we always thought things would turn around. I have lost count of the number of times we have lost to a SH opponent by a try. Still, after each match it is "Well, almost there". Then a grand slam pops up and we think everything is wonderful. I do believe it is changing, the Australia tour showed this to me. Sure, we lost every match (don't get me started, I had to take a break after that series). If this was years past it would be "Almost won a series in Aus, nice work!". As gutting as it was, people admitted that we simply blew it and we really can't take positives from the loss as we might have done. It might sound twisted, but we must accept where we are before we start moving.
My apologies if this doesn't make much sense, been up for a while (yet I still refuse to sleep). I'll have a read through this later and try to clear anything up.