Vref. You are correct. The alerted see and avoid was made more difficult because the airline crew did not communicate where they were heading . Same could happen in G. That's why it's important to remain alert at all times.
I'd just ask if this would have been an issue if the airspace had remained C at no extra cost. And there was no extra cost in keeping the airspace Class C. And, I'll cut you short on this one. Arguments to the effect that Tasmanian VFR traffic bears extra costs because of Class C is a total fabrication if you want to put that argument. There just is not enough around that precludes offering expedition and service in C.
It was ideological change, Dick, that wasn't predicated on cost/benefit. I'll keep repeating that line. There was no cost saving in going to E, and negative benefit as regards that incident.
In conclusion, I have no issue with airspace re-classification if there are clear benefits that offset the cost of maintaining a previous regime. But, in the case of Launy, it was just blind ideology.