Just to throw my two cents out there, I think this situation stinks. However, the rational behind the decision is that the government of any particular country has a greater responsibility to the citizens of that country than to the rest of the world. The preservation of that particular country's standard of living is deemed more important than trying to accept every application for residence. Before you all go crazy on me, I'm going to make another point.
First off I'm going to make an assumption, but I think it's a fairly valid assumption. I'm going to assume that by virtue of having access to a computer that everyone with access to this forum is consuming more of the world's resources than their fair share. By this I mean there is a finite amount of resources in the world, and a fair share would mean having those resources divided equally among the world's population. If you dispute this, go look up some sort of environmental footprint calculator and enter your info. My point here is that there aren't enough resources on this planet for everyone to have the high standard of living that I have. So I have to accept the fact the by having my lifestyle I am keeping others in poverty, by preventing them from having their fair share.
The Australian government in this case is trying to protect that lifestyle, to prevent the equalization of standard of living. Don't like it? Give up your cars, your makeup, your plane trips, your disposable materials, your large homes, your new clothes every year, buying something new before the old one is absolutely beyond the point of repair, purchasing things period because we have to think about transportation and manufacturing costs... Let's face it, you don't actually need anything that you can't grow or make yourself. You have all these things because someone else doesn't. Don't just talk. Do.
ETA: I'm not necessarily endorsing these beliefs. Just trying to stir the pot, and get some people to change how they conceptualize "fair".