I completely agree! I loved Melbourne! We made our first trip to Australia over New Year's 2002-2003. Spent our first few days in MEL and I fell in love with it. Beautiful weather, great food, easy to get around...even went to St. Kilda and attended "Bus" with Rod Quantock...what a funny "show"!
Continued onto Yarra Valley and stayed at Chateau Yearing. Everything was perfect...down to the nest of just-hatched new baby birds on our patio.
Tasmania was great too...visited Hobart and spent Christmas Eve / Christmas Day in Freycinet. It was like living in a postcard for 3 days!
Sydney was like any other American city. Yes, it was cool to spend New Year's at the Park Hyatt under the bridge, but I would return to MEL before I return to SYD.
Now, if you could just get rid of those speed cameras...
(they tracked us down in the USA and our attorney advised we pay the fee)