As you note, things have changed. The problem is Defence doesn't have a crystal ball. Personally, I'd suggest that for our primary AO the upgrade was perfectly adequate. Now that we are adventuring further afield, and as long as we are primarily engaged in COIN ops, its still quite adequate. The advantages that a turret confers over a RWS are still useful and its considerably cheaper, AIUI, as well. What should be added to the vehicle is provision for the fitting of bar armour if/when required. If increased firepower is desired, then I'd suggest a RWS at a latter date, perhaps on the hull rear a'la Marder with a 7.62mm MG.
I think part of the real problem is that the Army can't decide where or what its going to do with its armour assets. Are they going to be employed in an armour heavy environment, such as Korea or possibly even Iran or are they going to be engaged in power projection in the immediate neighbourhood or as support to infantry engaged in COIN ops? If its the former, then I'd suggest that the upgraded M113 is not the vehicle we need. If its the latter, then its perfectly adequate as an addition to the Bushmaster/ASLAV combination.
I don't so much have a problem with the vehicle per se, I DO have a problem with A) the armour protection levels the designed vehicle will provide B) the so called "firepower improvement" that the vehicle is intended to provide, but clearly DOESN'T and C) the cost effectiveness of the vehicle.
Supporting Australian jobs is important but sooner or later the line has to be drawn and I'd NOT like to compare an off the shelf purchase of "zero lifed" M2A4' s and "zero lifed" M113AS3/4's because I KNOW what would provide more capability, I'm just not certain what would be cheaper...
I'm not sure of the advantages that a turret provides over an RWS, particularly in relatively small calibre weapons, so if you'd care to explain it I'm willing to listen. (I "screwed" the T-50 around enough to have SOME practical experience of a turret)...
Australian Industry involvement is fine. My POV is though, that there's more to Australian Industry then Tenix. I'm not sure Tenix would care to put their M113 turret up against CROWS in cost v capability comparision, for instance and it is only one of many capability options that didn't even EXIST at the time this contract was written and offers MANY more capabiliies at a reasonable cost.
Sooner or later Tenix is going to HAVE to be brought to account, just as Kaman was, in relation to this (continuing) underperforming project.
I'd personally like to see a few "off the shelf" solutions ACTUALLY used to resolve these problems. They are proven relatively cheap, available QUICKLY, effective - capability wise and even in-service on other platforms .
I really can't think of too many "downsides"...