As for solutions, there have been numerous mentioned already.
1./ Allow all nonQF 1W sapphire (excluding AAdvantage card holders) to use any Qantas business lounge,
2./ Rename the whole domestic premium class “domestic first” or such like (booking codes must also change to F… etc, remember the “duck” analogy!)
3./ Rebrand the QF entry level international lounges as "Qantas Club with International Business Lounge", so that customers can understand that the bloody things are both in some terminals, and separate in others.
4./ Rework the 1W sapphire privileges, to state - lounge access is to the “frequent flier club lounge” where available, otherwise the “business class lounge”.
1W’s advantage over the massive Star Alliance network, is that it should be able to use its smaller size to offer more standardised service levels to all partner airlines’ elites. (i.e. “seamless” in many senses across its smaller network): 1W obviously recognises this advantage, because it offers the emerald status level, but it then allows individual airlines to constant shoot each other in the foot (ala Star Alliance style) by not adhering to the key - 3 tier principle.