It's not just 'old timers' who think it won't work. I've not been a fan of the sport for many years but I can't see Lancs -v- Yorks working. I don't have any animosity even of a sporting kind towards Yorkshire but if a Saints -v- Wigan match was proposed then I'd be up for that!
Besides, where exactly would the boundary for Lancashire be? These days Wigan, Salford, Leigh and Oldham are in Greater Manchester, St Helens is in Merseyside (even though it doesn't exist except in the minds of Liverpudlians), Warrington and Widnes are in Cheshire and Barrow is in Cumbria. I suppose Rochdale could provide the players!
Yep the county administration boundaries have all changed but no reason why couldn't use old historical boundaries from say 1895 ish.... or could be more inclusive and call it Lancashire & West v Yorkshire & East or Celts v England or even back to home nations... allowing celts or home country to include a nominated number of "exile" players (say 5 or 6) which over time reduces.
Anyway for me anything that has some locality aspect is better than the exile's fixture which most see just as a training game and find it difficult to have any real passion for.
Personally I'm hoping that the French continue to expand and eventually have a international team to provide competition to England. Maybe a forlorn hope... but again allow them and Wales to have a number of nominated "exiles" and then we may get a competitive x3 "country" competition.