Self-responding - adding my position.
I find most of these arguments against Google to be reasonable, inc complaints of monopoly. Personally I strongly mistrust Google and have mostly divested myself from their offerings.
What I see Google did here was to vet the law's claims of fairness (Google gets money from our content so we should too) by stopping that arrangement. Once done, that particular unfairness was ended and the purported aim of the law was satisfied.
The grumpyness following Google's action confirms the law's intention is to create a new stream of tax revenue that AU Gov would grant (for now, anyway) exclusively to AU media entities.
I could potentially be behind a tax->news. Maybe. If it were constructed with more wisdom than this law is. I can not support this law because of it's shoddy construction (firehosing user data? srsly?) and because it's supplied purpose (ending unpaid usage of content) isn't truthful.
A larger issue may be that snippet laws seem to serve to further entrench Google's position by making news orgs dependent on Google for their operating revenue. This seems highly problematic.
It also grants new control over news funding to the AU Gov. If that control can be misused - to forward (AU Gov or 'partner' Gov) agendas - modern history tells us it will be.
Lastly, once this is normalized, who should pay next?