The problem for MEL is its geographic location. North American flights practically overfly SYD before crossing the Pacific. European flights are longer compared to launching from PER or DRW. Even as a domestic hub, other than Tasmania, it doesn’t make a lot of sense.
The other problem with MEL is they see themselves as an equal to SYD, mostly due to creative statistical areas leading to “largest city in Australia” claims - but the catchment area of SYD within a 3 hour drive, including CBR, NTL WOL, the geographic centre of East coast cities including BNE, ADL and MEL, and being by far the most attractive city for tourists and business - it’s completely sensible for QF to focus on SYD. And better to hub out of SYD than to split services between the two.
It’s completely normal for foreign carriers to serve more cities than local carriers - BA almost exclusively fly longhaul out of London, AA from its hubs, it’s the same just about everywhere.
