That's more like it. if it was just that letter and PR release I'd be surprised. but even so... I think it's just for show.
remember news Corp is not just an Australian company. this could be part of a bigger game between Google and newscorp, and between newscorp and the aus gov.
They care. I'm currently situated in Australia and did a random google search and a giant popup jumped up saying "The way Aussies use Google is at risk". No way they are doing that on their main search page if they do not care.