I’d say corrupted rather than crazy.
The move of OAR from Airservices to CASA was and remains a sham so typical of Australian aviation. That CASA (the supposed regulator) would blithely put in writing that it wants the regulated (Airservices) to make a recommendation to the regulator about Avalon airspace arrangements shows how corrupted the airspace designation system has become. The other examples given by Mr A would in other regulatory regimes be breathtaking, but in Australian aviation? Not so much any more.
You forgot to mention that the ATSB would not be prepared to say anything critical about the sham. And we know why.
The ‘dream team’ in action. Or maybe that should be ‘inaction’....