It seems to do mostly capital cities so far, and the paths between. There's not really a capital-to-capital trip that passes through the Blue Mountains.

I would really like an option that is something like "7 days around NSW" and it gives you a circuit passing through a variety of areas throughout the state. Eg:

Sydney - Wollongong - Goulburn - Wagga - Forbes - Bathurst - Blue Mountains - Sydney.

Edit: I take it back about my first point, it does do Blue Mountains if you plug it in, but it was being weird for a bit and kept showing me the same Syd - Melb trip no matter what I plugged in, so I thought it wanted a capital-to-capital connection.

Those locations are definitely present in our knowledge graph. You wanted them proposed by default, without explicitly entering them? Katoomba pops up pretty frequent in our lab (but Jenolan caves don't). I promise if you specify Katoomba and Jenolan caves as start or finish or travel-through points, you will get good routes via them all.