Lets remember that the majority of the JQ network are routes that QF sourced out to QFLink operators (predominantly Impulse).
The way I see it, QF have refined there model to make the price/seat even cheaper than it was before, thus generating more business.
This is hardly a parallel LCC, but just a more refined version of what was already in place. Not to mention, a new brand name.
Interesting to note, regarding Avalon, it is cheaper to get the skybus to Avalon than it is to get the skybus to Tulla. Furthermore the parking at Avalon is 50% the price of Tulla, quite a considerable saving.