One of the strongest selling points of a regulated ccTLD is security and peace of mind.
What that translates into in practice is that there is a slightly higher degree of control over who gets to register domains.
In Ireland, for example, the IEDR has been able to vaunt the IE ccTLD due to its positive results in a recent McAfee siteadvisor survey. The same study gave a very positive rank to AU namespace.
While this kind of reports are wonderful, deregulation to some degree is also a very positive thing.
So why is MelbourneIT so against the entire idea?
In a recent interview Theo Hnarakis, their CEO, expressed his reservations about the deregulation.
It makes for interesting reading, though you would have to question their motivation.