Maybe the possible court action will focus on the intent of the legislation. If the intent of the legislation is argued to be that it was meant meant to stop the downsizing/elimination of the international brand by stealth maybe there could be an issue.
Of course Qantas management won't say anything in public to prejudice their agenda in favour of a challenger in possible court action.
As far as they are concerned whether they believe it or not privately, shrinking Qantas international to 3 main routes, 13 A380s and 9 B744s and no further investment on the horizon until it become a Jetstar replica, they believe(in public) there is no breaking of the law.
Remember its already been stated that no B787's will be coming to Qantas. Qantas management are obviously can't get over the fact that Australia is an end destination and not a hub. Qantas's plan from an outside perspective is to base itself somewhere in the middle of the earth so they can have the advantages of SQ, CX, EK etc. That's where the B787's will end up IMO.
At the end of the day it's a matter of political will if it ever gets more then 10 minutes airtime.