I'll still take QF over DJ / other airlines. I fly 90% domestic and wouldn't travel any other way.
Unless you are flying domestically between major centres, you must include Jetstar in the equation. I fly between the Gold Coast and Sydney several times a year - an airport no longer served by Qantas, and where the QF lounge has now been closed. My choices are Tiger, Virgin Blue and Jetstar.
Internationally, I stopped flying QF some years ago for two reasons: first, the business class seats were below par. Even after the last business upgrade the seats, not lie-flat, were inferior to the (quite old) BA business class. Second: it was impossible to use my points to fly business class back from London on the Kangaroo route at the time I usually fly.
Domestically I stopped flying Jetstar after a very unpleasant experience being seated next an obese passenger who was also aggressive about the space he took up. The Jetstar crew were pathetic - disinterested and unhelpful.
I now fly Virgin Blue only on domestic routes: I earn Velocity points on every flight and the general attitude of the airline is much more customer-focused and friendly than the awful Jetstar. I fly Virgin Atlantic on the Kangaroo route, and recently I flew V-Australia to the USA. I fly business, or "upper" class using points if I have them or pay for the same ticket if I don't.
I did not convert my credit cards to the "enforced transfer" regime when Qantas moved to limit customer options. My Mastercard earns Velocity points, and my Amex earns Virgin Atlantic miles. I am now "out of the loop" as far as Qantas is concerned - earning no QFF points on my cards or flights.
I still have a few QFF points. I use them as "fill-ins" if I fly domestically in the USA or Europe. I recently had to call the QFF centre to book a flight in the USA - the Qantas rep must have been on a call-volume target as she rushed me through quite a complex booking between three US cities to the point that I was quite stressed when I hung up.
That call reaffirmed my feeling that Qantas, now run by accountants, has lost the plot. Branson, the uber-salesman, loves his customers - or makes them feel that he does. Qantas does not - accountants don't like customers as a rule...