Magic, Edgeworth and Lake Macquarie have been down that path before - didn't end well....
The simple reality is that they are not sufficient players to have 8 equally competitive 1st grade teams (at the level of the top 4) at the moment. With the junior development we will get there over time (some of the players who started in 14's are now showing up in 1st grade sides).
Anyone who thinks dumping one or more clubs and bringing in others is going to solve that problem is delusional.