I would happily go up or down a thousand to avoid getting a nice new 206 shaped hood ornament.
This is an example of reasoning that is almost completely disconnected with real-world risks and real-world risk mitigation.
A gross over-statement of the risk, so as to justify unnecessary procedures.
If you've ever been in a bugsmasher closing on another bugsmasher on the same track and level VFR, you'd know how hard you would have to try to deliberately collide with it. Assuming you don't want to deliberately collide with it, and what's more you've even been alerted to its existence, I reckon the chances of a collision are about the chances of the sun burning out tomorrow. You do what you do on the extraordinarily rare occasion it happens OCTA: overtake, in accordance with the rules of the air.
I repeat: I know it was the system. But Australia still has millions of cubic metres of airspace tied up on the basis of this thinking. Transitting Williamtown is like entering a universe in which every aircraft must be treated like Air Force 1 surrounded by a Romeo, and the remotest possibility that one civilian aircraft might come near another aircraft - civilian or otherwise - is a problem. We're talking airborne aircraft numbers that can usually be counted on our fingers. I realise that some of them go really fast and they don't have much fuel reserve when it's time to come home, but jeez, seriously? 1,000 light aircraft could fly at 500' without clearance from Broughton Island to Nobbies every day for a 1,000 years and the chances of a mid air with the hotshots and RPTs out of Williamtown would be still be infinitesimally small.