The problem would be, if this format were adopted there'd need to be an ACT team otherwise there'd only be 7 teams. The alternative would be to merge Queensland with NT but both sides are strong enough to field a team in their own right.
I like the idea that someone on here suggested (not sure who, sorry) of playing the series in two team divisions, and each year teams get promoted/relegated based on who won. The divisions might be something like this:
Victoria vs WA (D1)
SA vs NSW (D2)
Qld vs NT (D3)
Tas vs ACT (D4)
Then the following year, if Victoria defeated WA and SA defeated NSW it'd be Victoria vs SA the next year etc... Then you'd never see the situation where the best teams are playing the worst and it'd be as even a competition as you could get. The series could be played after the AFL GF, then no clubs are risking their season by allowing their best players to play and the best players get an opportunity to play representative footy, something which doesn't exist now that the Irish series is gone.
Even better would be to play a round-robin series of two four team divisions, however then you're forced to play more than one game and I doubt the clubs would go for that.
I'd love to see this happen and I'd be barracking very hard for the Tassie side, even if they were uncompetitive against the better teams.