Flying Tiger - I think that the numbers of people from the north coast of NSw who are prepared to drive up to an hour or two so that they can fly with Virgin Blue (rather than a Qantaslink Dash) would seem to add further weight to your argument.
It seems as though the DJ management mght have been a bit caught out by the news re: Avalon. perhps this is one of the factors that will contribute to the lower costs for JetStar that GD quoted recently...
It all seems to have gone very quiet on the DJ front... I guess they might be feeling a bit uncomfortable thinking that they might be about to be outflanked...