As an expat who moved from the UK to Australia 5 years ago, I would choose QF over BA any day, but thats because they are different products for different markets. The quality of the lounges with QF vary significantly from the Qantas Club through to the First and Chairmans club. The Perth Domestic Business lounge for instance has a some sommelier at a dedicated wine bar and a pizza oven, the Sydney domestic business lounge on the flip side is much busier and more practical. The Perth-Sydney-Perth flights have always been a favourite of mine, fantastic crew, great seats and great food. I'd choose the personal friendly touch of QF/BA over the serious almost clinical service on Asian & Middle Eastern airlines any day.
The aircraft also tend to be clean and well maintained unlike many of the BA aircraft, in addition to providing a real business class seat on short haul services. But again this is all down to what the market wants. If real business seats and proper meals on European flights were in demand and people were willing to pay for it, I'm sure it would exist.