As someone who lived there for short periods before, during and after independence, I'd have to agree that the Australian colonial yoke, whilst obviously not perfect, was a pretty light one for most local people and for all its faults, provided a far better life for all Papua New Guineans (with the possible exception for today's small elite who find themselves at the top of the fast-withering tree and the most successfu raskols - who may be one in the same people) than they enjoy today.
I can only join others in saying it is the most magnificent country, with the best people one could hope to meet. But sadly, as politically incorrect as it might be to say it, despite very generous, (most would say extraordinarily generous) Australian assistance since independence, the people now running the country have proven themsleves to have been not ready to rule.
Thanks in part to all those Australian dollars, it has taken a few more years to get there than it did most post-independence African countries, but PNG is today fast descending into what has become the standard downhill road for most independent African countries and faces the real risk of disintegration into many disparate semi-independant mini (failed) states under the guise of Federalism.
I don't know if Australia can afford to have a half dozen failed states on its doorstep given the way Al Qaeda and similar organisations have taken advantage of similar situations elsewhere in the world. Unfortunately, with the current financial crisis beginning to bite, I don't know whether Australia will be able to afford (in monetary terms) to do anything about it, particularly as it lacks the necessary appropriate military hardware (and manpower) to mount an effective force in the area.
See the "The AFD Buys Another Lemon" thread on the Militay page to get an idea of what I'm on about with that comment.