The reason the squad exists is because it was part of the deal for Australia to leave the OFC. That deal has now expired. The whole point of it is to keep professional football in Oceania and provide a pathway for NZ players.
The fact that we're not Australian is only a problem because there isn't much income generated from NZ. If we were paying more or were growing then it wouldn't be a problem IMO. The problem is it appears as though we're stagnating.