However, I don't know that that is what the outcome would be if the voters preferences were applied, and the preferential voting is part of what Australians feel is democratic about it. In particular, I have a strong hunch that given preferential voting above the line, preferences would still have run strongly against the Labor party.

There actually are only two single-issue micro-parties in the Senate, so the "Silly Parties" don't actually hold the balance of power on their own. Nick Xenophon is a traditional independent, Palmer United Party is one among several aspirants to take the place of the National (originally Country) party now that coalition has muddied the distinction between the Nats and the Libs, the Liberal Democratic Party is a libertarian oriented minor party, Family First is among the fringe conservative parties emerging from the compromises the Libs make from time to time to hold power (and indeed is returning to the Senate for its second time) ...

... I think many Australians would reckon it a fair go to let them have their chance.

Reforms that fix the problem of micro-parties gaming the preference system without eliminating the chance for a micro party to win a seat if it really is the leading preference of enough voters would likely seem more legitimate in Australia, which is the first cut any reform has to pass.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.