That's the dream Neville. They wanted the 717 in house but Cobham made them an offer that they could not refuse and Cobham are now suffering because of it. They dramatically undersold their product (pilots).
Unfortunately for Qantas, 717 pilots are not in large supply so the cost of setting up another in house operation is ridiculously cost prohibitive.
The 737 can't cover it. The F100 can't nor can the Dash. As much as some guys might not like it, the 717 has a place in the Qantas fleet. It's cheap as to own/lease and run and is perfect for the thinner, longer routes.
The best option would be to take the operation back, pilots and all. 717 crew would be happier and all this nastyness may just be resolved.