To clarify, there are three different outcomes at the end of FSP:
1) You are recommended
2) You are not recommended, but are invited to retry OSB after a specified wait time (typically a year, sometimes longer).
3) You are not recommended by the board and are not welcome to reapply due to incompatibilities with the position of ADF pilot.
Having experienced the process personally, I have a lot faith in the current system and the people behind it. I don't know what the situation is with the bloke you mentioned TC, but I know of people that got an offer with no previous flying experience first time round. I also know of many that got an offer with a myriad of flying hobbies and flying licenses to their name; if you don't have any experience and you are not involved in any aviation-related activities, then that would surely cast doubt on just how interested you are.
Obviously there are guys with more insight and far more experience than myself here so I'll leave it there, but I always took my "failures" as an opportunity to improve and there's no shortage of constructive criticism to take with you from Tamworth!
@ Blackbird: Yes there were two distributions staggered over last week (RAAF, don't know about the others), but I don't think its Wednesday when the final word is given.