So this is the fundamental problem that VA faces.
Group A, who pays for their own tickets, does not want to pay a large inbuilt and unavoidable amount for food (and other services) that may or may not be worth the additional cost and varies significantly with route and time of day.
Group B, who pays nothing (cost covered by others), does not care about value for their money etc and just wants everything to be provided.
Unfortunately, VA cannot satisfy both Group A and Group B at the same time. As QF leans towards Group B then VA has decided to lean towards Group A.
Earlier this week, I made bookings for four VA transcon flights and saved a total $557.15 over the equivalent QF flights. As a firm member of Group A, I have pocketed this saving and very happy to do so. The only things I will miss out on will be a few slices of pizza in the QF PER Dom J lounge and a possibly larger meal and ice cream on the flights which I have not upgraded to J. Overall, the cost/benefit analysis was not even close.
Not serving complimentary soft drink etc on all flights is a bit cheap IMHO but unless better food can appear magically for free (to VA), the status quo looks like it is going to be the way forward.
The advantage of some competition is I at least have an option if I do not like what is being provided by my current service provider.