Not sure that wedging yourself into the LCC corner is necessarily a smart idea. You will ceed all high end domestic and international travel to QF and just live in eternal price war hell with Jetstar and all the airports. You also compete with QF on your higher yielding flights. People will pay the extra $10 and fly QF.
I would have thought a Jetblue type of product or some variance on the current offering would have been the way to go.