Good to hear and pretty much the direction ASC and DSME have been going for years. As gf and others mentioned previously Australia looked at and rejected AIP as unsuitable for RAN evolutions. Much better performance can be achieved using powerful diesel generators to rapidly charge massive batteries.
Interestingly Pacific Marine Batteries have developed innovative light weight batteries that would have been ideal for an evolved Collins, the trouble is a lack of vision by successive governments meant, although there was a need for additional submarines to meet operational requirements and in particular to ensure there were sufficient hulls available once the class started cycling through FCDs, they were never ordered.
There are so many improvements, developed by ASC, DSTO and other groups, that could have been incorporated into a second batch and even more into a third had they ever been ordered. Had we initially ordered two batches of three submarines over ten years or two of four over twelve years many improvements could have been incorporated into the second batch. A third batch could have followed for a total of nine hulls over fifteen years or twelve over eighteen years, the choice can then be made as to whether upgrade or replace the first batch. Obviously with nine hulls replacement wouldn't be possible unless the existing boats were sold on, with twelve hulls you could conceivably replace the first batch as they hit twenty years each, for a continuous build, maybe still selling the old boats.
This wouldn't be cheap but it would definitely have provided the capability required by the Australian government without the issues encountered with the current fleet. Improvements would have been built into the next batch rather than boats being taken out of service, out of schedule, for longer than intended, to incorporate improvements not anticipated in the initial design. Deficiencies unacceptable over a thirty year life would likely be put up with if an improved batch was scheduled to enter service in several years after which you could decide on a major midlife upgrade involving gutting and rebuilding the boats or simply replacing them with a new batch, more expensive but twice the life.