This is probably serves as much a reminder not to bring soft drugs into foreign countries as it is to not check baggage.
I had been following this one in the BA forum. (It's mixed in with another case involving codeine in Dubai and there are links about the Bali details starting with post 5.) It does appear there's a good chance the Australian woman in Bali could be innocent (there's some belief that her bag was to be used by handlers within Australia to transport the pot, but it didn't get taken out at her connecting point in Australia by mistake). It's also so easy to get pot in Kuta, why would any one take it into Bali?
There's also a comment on the BA thread that the judge in this case gave one of the Bali bombers 2 years.
http://www.flyertalk.com/forum/showthread.php?t=425498