a) Australians have very high incomes and "CUBs" continue to happily pay for their over priced gizmos. For all his whining about unfair competition Gery Hervey isn't exactly suffering.
b) ALP and Liberal govs have happily voted for measures that entrenched regional distribution monopolies (FTA, draconian copyright regimes, criminalisation of DRM circumvention)
note: in the early days of the Howard government parallel importing of media was legalised, this had a dramatically positive impact on pricing for consumers.