I've always thought a Western Sydney team would be a powerhouse, with Parramatta's juniors and Penrith's juniors and money...Trouble is, the NRL does want a Central Coast team.
Another idea would be to have the Dragons play more games down at Wollongong or wherever the Steelers played. At least then it gets some Sydney teams into more "regional" areas. Also, if Parramatta and Penrith don't bring in some success in the near future, merge them and have the new team as GWS....