Hierarchy adds value
I think the hierarchy adds value, although possibly not as much as in the past. If I visit a site and the URL is *.gov.au, then there is a stronger change it is a website run by an Australian Federal government department. If it is *.wa.gov.au then I can assume it is a website from the Western Australian State government department. If the website ends is *.edu.au, then it is an educational institution of varying quality.
The distinction between .com.au, .net.au, .org.au & .asn.au is more open to interpretation and the correct place for an entity can change over time.
Biting the hand that feeds IT
