Further more, does Austal have a replacement ship design for the evolved cape? Something larger with my scope to upgun would be great to evolve the region ships to act as more of a deterrent in grey areas
We tried the larger patrol boat option with the Arafuras. That didn't work out too well, mostly as the majority of the role could be done with a smaller vessel and smaller crew at lower cost. I think it is important to remember that patrol boats are the equivalent of the police car with pistols and tasars. They are not tactical response or riot control.
The patrol boat fleet covers the near shore constabulary role (poaching, immigration etc) of which there is a lot of work and the fleet is kept busy. They are however never going to be front line (or second or third line) combat vessels, and as such I can't see them getting big guns or missiles.
I would have the view that as the old capes retire, they will be replaced with new evolved capes. Maybe evolved II capes, but nothing much more. Austal will make them as required in their existing sheds. They are cheap and chearful, and they seem to work OK. I haven't heard much bad about them. Also, a lot of the patrol function is basic surveillance, so don't be suprised when border force get some fancy recon drones to supplement their fleet.
As to what happens with the Arafuras, we are yet to see. I personally think they will be useful in the broader S Pacific and SE Asia patrol routine (unsurprisingly the offshore function), taking the workload off the MFUs (which are in short supply) with general visitations and presence. I would view that they can add some value here, maybe even become successful. Volkodav earlier made the statement that sometimes you don't need to be the biggest, you just need to turn up and look neat and tidy. I think the Arafuras can do this quite well.
Tbone, I think your point of how defence manages the grey zone is valid and will become more of an issue over time and will get uncomfortably closer to our shores. I'm not sure patrol boats are the answer to covering this though. I watch how China pushes the Philippine Navy small boats around (somewhat brutally), so this job really becomes a coast guard cutter or GP frigate role. Contrary to my above point on the Arafuras, this is a time where you need to be the big guy in a tank top doing bicep flexes.