I've been thinking of a way for QF/JQ to improve its service.
Rename Jetstar to Qantas Express or something like that, with a similar corporate image to Qantas mainline.
Then, have two classes of cabin - discount ecconomy and full ecconomy. In full ecconomy, the service would be just like Qantas - Free meals, VOD / TV screens, slightly better seats. Full ecconomy would have dedicated check in and you can check in late if you have no bags. For either class, baggage transfers available to any OW aircraft. Also, QF elite members in full ecconomy have their status recognised with priority bags etc.
Discount ecconomy would be pretty much like Jetstar is now.
Between Qantas Cityflyer and Qantas express, they would be able to cover all the domestic routes, and people can still pay extra and get the full Qantas service. Obviously the red-e-deals would only be for the discount ecconomy class.
Probably unlikely to happen, but it's nice to dream.