Galdian yes you are right some LCC's are putting business in long haul.
Personally, when I've had to pay for it, I've sharpened the pencil and worked out for a few dollars more I don't have to be surrounded by hoards of LCC passengers. Cabins getting tighter, stress getting higher and I think there will be a market for QF and VA as not everyone is trying to save small feed on airfares. You know, I just couldn't be bothered getting my card out to pay for food whilst on board just give me something and let me watch the rest of the movie is my mantra.
Being in the industry for a few years I also know that there is no such thing as 'cheap'. There are no short cuts, you get what you pay for. I'm not up for a 18 year old FO cadet taking my family into the Gold Coast on a dark and stormy night thanks very much! (I'll take QF with all the training and equipment on any day). Having said that there are PLENTY that are willing to do the LCC option as we're hardly a country renowned for choosing to pay more for service or quality are we.
As for NZ and the Tasman? How about ANZ just decide they'll do it and we do Australia. Hmmmm.
Either way, it would be good to see some profit in our industry for the airlines. Seems everybody else is having a great time bar us!