Yep the definition of a lost cost model is now getting a bit fuzzy!
They are trying to be attractive to other markets other than the price sensitive one. I am surprised they are openly advertising the seats as business now. The last thing they would want to do is create confusion in the market place, ie exactly what is Jetstar.....low cost or full service? Especially confuse the product with what Qantas offers! Don't let Starclass get anywhere near the Qantas skybed or even what is on the international 767 or they'll screw it up.
I say they are trying to hedge they bets but I also think the success they've had domestically is clouding their judgement. Jetstar has to be completely different to Qantas or the whole exercise fails and that will only hurt the core brand which is a very big no no!