Dick,
When will you finally accept that the loss of that aircraft came down to the poor decision-making of the PIC. Many of us have made similar mistakes in our time, but fate showed her kinder side to us, while choosing to punishing the unfortunate occupants of that aircraft.
Whether the RAAF should've allowed him through their airspace is a moot point; if he felt sufficiently concerned, then the PIC should've declared a PAN or a Mayday and he would have been provided with all the help he needed.
Instead, he advised that he would stay west of Newcastle's CTA. You asked earlier in the thread why no one advised him that he was so far off track; why should they have? He advised he was heading in that direction. He chose to stay OCTA. No one had a responsibility, moral or otherwise, to interfere in his chosen plan on the day.
VFR pilots have enough airspace to fly in if they're unwilling to ask for (and occasionally wait for approval) a clearance to fly through CTA, irrespective of whether it's civil or military. There's no need to free up any more CTA than has already been given up.
The real scandal here is that at almost every major-city CTA in this country, airliners with up to 500 passengers are cleared to fly outside of class C airspace while descending towards their destination. Only one domestic carrier that I know of actively discourages their crew from entering class E airspace - which then necessitates higher pilot workload. Why? Just so that VFR pilots can fly more freely in the airspace beneath.
I think for some years now, the aviation environment in this country has become victim to a 'tail wagging the dog' airspace mentality. Perhaps the architects of the pairing-away of CTA some years ago should instead have concentrated on developing systems to permit closer interaction of VFR and IFR RPT in CTA without unnecessarily increasing controller workload. That way all users would have benefited.
Some observers would think that the loss of MDX has become, over time, nothing more than a convenient springboard for the political purposes of some. And therein lies the real tragedy.