you could shrink the lists as well.With the money question aside... Isn't the talent pool problem solved by the fact that there would be two states with elite teams and the connections that go with them? That should theoretically improve talent coming out of the two states if done properly..
Then there's the other question about that argument which is whether there is actually a lack of "talent" or rather a case of a game that encourages the success of athletic ability over talent in the modern era? Meaning a lot of players skills and abilities aren't developed to their potential and draftees are picked up based on athletic merit rather than football talent. Perhaps it's a more complex issue than "there's not enough talent"?
But i don't think it's necessary. Nation of 25m. We can't find ~850 people to play AFL at a decent level.
Vic remains an issue. 50% of the employers are in one state that doesn't have a retention issue.
What you want to avoid isn't so much a shallow talent pool, but a concentration of talent. Particularly you'd want to avoid the bleed GWS and GCS experienced a few years in from getting off the ground.