At the end of the day it's opinion about something that didn't happen. Your entitled to yours. There is no absolute right or wrong as I see it.
The league and the cricket experience is more that as much as possible was taken, so the new comp had as much credibility and as little competition as possible. Thats how I read it.
Fair enough, but I think you're grossly overestimating the 'competition' a few small VFL clubs would provide to a new national league. They probably would have dropped back to the VFA (as it was known then) and kept that league going much stronger than it's going now.
It's an interesting hypothetical, especially in other states, if existing state league clubs were taken (I believe the Elliott proposal was for composite teams in other states to add to about 6 VFL clubs). What would have happened to the WAFL if 3 clubs left it? Back then as an 8 team league the loss of 3 teams would have gutted it.