So does this mean you can "burn" Qantas FF points on a "Qantas" flight to Europe via Dubai - with the Dubai to Europe bit being flown by Emirates. I would have guessed that the 'arabs' would say that is a big negative.
Um, I think you misunderstand how FF points work. When a Qantas frequent-flyer spends points on an Emirates flight, that means CASH transfers out of the Qantas Frequent Flyer program and into the hands of Emirates. It's just like selling a seat, except that now Qantas does the marketing and administers the program; Emirates gets the money and more people in their planes.