You are more than spot on, it was the closest thing to overall success of the sport here, it was based on the need for football to remain a truly community sport, strength in the grass roots is what works the world over, we for some reason chose to forget all that, in order to compete with some sports that (kept theirs community ties) sold on the idea of hope on something called mainstream...
Mind you I, by no means mean that the NSL shouldve survived in that form either, it had its own problems and challenges etc, I do honestly believe though that the transition that was taking place in the later years, especially seen with the success of Perth, Spirit etc which were still community centric clubs based in roots, was the right path to grow the league and incorporate all ( yes i know in hindsight its always easier). This would then have let the clubs be driven by success and failure.. If this had taken place with openess (no one ever blocked wollongong, perth, carlton, collingwood and so many others from giving it a go away from the traditional ethnic clubs) we now would already have 2 functioning divisions and a much healthier football reality!
A revival is clearly needed, and above all warranted, but it will take a looooot of work to make sure it is sustainable on our end, and it needs to be for the good of the game overall, and all of us involved in it as a whole, if done correct its more than to the aleagues benefit also even if it does have to be pushed/forced upon them.
For me personally a strong second tier supported by the aleague with some promised date even in the future of the hopes of a playoff for pormotion and relegation would allow me to view that league in a different light and bridge my stern refusal to engage with it.
Thats all most of us even ask for, and thats the funny part of this whole thing..