With the proportional voting issue there are pluses and minuses but on balance it must be more democratic if the voting reflects the number of people represented. I bet there would be an outcry if from a national electorate perspective the country was broken into blocks of same sized land area and each area elected a Member of Parliament irrespective of how many people actually lived in that area. Although the MSNZ club voting system is not exactly like this the principle is not that different.
The other thing is that MSNZ collects an annual capitation levy from each club based on how many members they have. It seems a bit inconsistent if MSNZ charges clubs on the basis of their member numbers but don't let them vote on the same basis.