Hi Dave, for what it's worth I run a small business and decide my own travel. I have used DJ, JQ and QF domestically. The lounges and tiered FF scheme are big steps forward for DJ, but still some things lack if I am to take DJ seriously (which frankly I don't).
The last flight I took with DJ (BNE-ROK) annoyed me intensely - the cabin crew made a joke out of the safety demonstration. I regarded this as stupid and unprofessional. I don't take kindly to people making a joke out of my safety, thanks. I don't mind crew trying to make the flight comfortable, enjoyable, fun, but some of your staff are clearly too immature (and/or badly trained perhaps) to know when and how to draw the line. Bye bye DJ - I've never flown with them since.
(Incidentally, in some airports the ground safety standards of JQ absolutely stink, but that's another story.)
Secondly, although I am extremely frustrated at the declining standards of customer service with QF, ridiculous J class pricing and the intransigent arrogance their senior management show customers and staff alike, I am still unlikely to churn to DJ.
One big reason is the lack of evolution in fully dovetailing the Virgin Blue FF scheme with any other of the international airlines. I want a seemless domestic/international FF scheme, with, for example, inter-changeable status credit earn (say) on Emirates or Virgin Atlantic with DJ, or better still joining Star Alliance. Meanwhile I get that from QF/OneWorld and like many others put up with (actually quite alot) of "BS" and poor service in exchange for the benefits.
I am personally unlikely to fly Tiger, but think you are fooling yourself if you believe that you won't lose some of your market share - admittedly maybe not your business clientele (which may be where you biggest profit margin lies) and perhaps Tiger will help to expand the market itself through aggressive pricing and novel airport usage.
It is a personal perception that QF have failed miserably to turn the knife into DJ as far as the business clientele is concerned, by letting their service standards fall instead of being determined to develop and maintain their product to define a demonstrable product differentiation compared to DJ (which would relate to perceptions of "value") - possibly because they have been so obsessed with their favourite child JQ. The QPs are a zoo, the 767s tired, etc, not to mention the absolute farce that is BNE check in. One pithy example is that a J class passenger on QF now has to pay a $10 fee to change what is supposed a fully flexible fare.
If QF decided to take its product seriously again I think it might be DJ that is caught out in no mans land, neither a
LCC and neither a fully optioned full service carrier, but you might be lucky as the QF managers focus on the Tiger vs Deathstar battle and continue to ignore their core brand (madness).