"let us suppose Dixon wins . . "
Do you think there is any doubt?
" . . . and Qantas pilots end up on a JetStar inspired contract"
Dont you mean that Qantas pilots will end up working for Jetstar or will be shown the door.
"The Legacy pilots who are extensively trained to a standard, or the LCC pilots who are trained to a price?"
Probably the cheaper ones that dont crash as apposed to the expensive ones that dont crash (assuming we turn a blind eye on BKK). Just like the rest of the world my friend.
"I wonder who Qantas' insurance underwriters would favour"
The insurance underwriters for Qantas also insure carriers in Asia and the Middle East. Jetstar pilots are deemed suitably trained by the governing body of Australia and that is all the insurance company is generally interested in.
"Maybe you could then regain the high ground by signing a new contract that gives you back that competitive edge so as not to pollute that culture."
Maybe Qantas pilots will begin to compete in the labor market instead of relying on an outdated principle of Government protection and militant unionism. The sooner you accept change the sooner you will move from victim to participant.