Walrus,
Thanks for that clarification. I thought it was the other side of loopy. The idea of a central school for flying instructors is not bad but you are right, there are plenty of other problems associated with such an implementation.
As for Kernel, this has no chance IMHO. It was the site of Captain Cooks first land fall in the region and (as far as we know) the first Aboriginals were killed by whites there (there is a plaque to prove it). No way is that area going to be developed for anything. I can see the protestors now...
I like the idea of Sydney becoming a domestic airport only whilst Bris and Mel become the major International Ports. Bne still has heaps of room to grow if needed.
What about if they got rid of the army base near Liverpool??? There might be enough room there to build a runway or two.