Ka,
Not to be pedantic (OK, yes I am!!) but the phrase you're looking for is "Taking on Emirates in their own backYARD"
The porblem with what you are saying is, well, exactley what you are saying. Dubai is a great Hub, not a destination in itself. Something like 80% of EKs traffic through DXB is transit pax going on the different destinations.
There would be no point QF flying there unless it was tied up with other carriers going on to popular destinations in Europe, Africa and the Sub-Continent,.
Even then, you can't match the seamlessness and consistency of product of flying with one carrier through a hub which it basically owns. This has always been the strength of the likes of Singair and Thai, and EK has taken it to a new level.
Australia simply is where it is, and Qantas has the restraints that implys. It also has the advantage that it can reach some of it's biggest markets (notably North America) non-stop, and is thus able to shut fifth-freedom competition out on those routes.
If THAT ever changes, QF would be in REAL trouble!