Oh, yeah, I'm assuming it is just domestic - but for me, loyalty to an airline is pretty much for two things... Slightly better treatment where it doesn't cost them much (which both QF and VA do pretty well domestically, but VA can't for international long haul, given they don't really fly international), and the ability to get into J or better for international holiday flights.
VA used to do better than QF with redemption availability, but it seems more and more like that is going away... In which case I should switch back to QF, where I would at least get that slightly better treatment internationally as well.
For me personally, they are close to converting me from a VA loyalist to either indifferent or QF loyalist - if they want that graph to be a reality, they'd better either change something, or hope there aren't very many people like me! I have no idea why they think they will be able to convert indifferent travellers (who have apparently remained indifferent to VA for the last 4 years) into VA loyalists, unless they're planning on changing something big.