Sounds like NZF's and the 7 regional federation's fear, is that all the best female young players nationwide, will just head to the Nix, and form a 'super' team - so making the NWL a bit of a lopsided comp. ie the regional fed teams won't be happy if all their best young players are cherry picked off.
Remember this is a comp that is quite different to the Handy Prem, in that most of the teams are very young. You don't have a strong mix of overseas pros, established NZ domestic Handy Prem journeyman and young exciting talent. Pretty much all the players in the NWL are young.
The best group of young players in the country, are effectively the best players in the country (with the odd exception like Sarah Gregorius or Annalie Longo). So if you group the best of them at the Nix, then yes you likely form an all dominant NWL side.
Then you also have to figure out how FFDP continues to fit in with the pathway.
However the big picture here is, what is the best for NZ Women's football long term. That's the establishment of a Phoenix funded W League team.
It will happen, but a few heads will butt in the process.