No, when the team did exist though it was topped up with players from the local competition. In 1990 the team actually managed to defeat the Victorian team at North Hobart Oval. The level of competition down here isn't high enough to do that these days, but back then it certainly was competitive.
Anyway, the idea now is totally unfeasible because as you said Tassie (and perhaps Qld and NSW) wouldn't be able to field a competitive side. That wasn't my point anyway.