The crux of the matter is territorial copyright. The US and the UK have territorial copyright. New Zealand has eliminated territorial copyright. It seems that even with the campaign, it's likely that Australia will do the same.
It seems plausible to me that at some future meeting of the WTO, either New Zealand or Australia or a BRIC country will say, we want cheap books also. If I were in Oz, I would fight this fight on the basis of eliminating territorial copyright world wide.
No doubt that will stress the publishing industry. But they have to figure out new models anyway. Kindle is coming to the UK. Kindle + ereader copy cats will probably spend around the globe sooner rather than later.
The threat to copyright is not about government v government. It's about content being fairly priced given the new possibilities of delivering content.