[Australian here] Recalling these 'negotiations' when they happened and when Facebook blocked news links for a short while (which was actually quite a lovely time) - the whole thing came across as a shake-down with all the subtlety of a tele-evangelist.
I'm Canadian and I suspect our problem is that we're approaching this in earnest, not realizing that the Australian law was a shakedown and made no sense from an earnest perspective.
We were advised by Australia's top policy wonk, but maybe he was in earnest and didn't understand the game he was in.