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It might be a simplistic view but i experienced a Premier grade and "Subbies" model over east a while back and it seems to work well. Allows all to play and to reach the highest point of their competition. I know some clubs have aspirations to play higher and possibly deservedly so, but you only have to look to Sydney where Balmain have plenty of $, a good set up and are hugely successful in the second tier. For the development of the game and the sainity of the clubs and volunteers give the comp a base to work from, i went to watch a mate play on the weekend only to find out the team had forfeited the night before.
Surely with the limited numbers in WA this could make sense.
But then again it just one way..