Labour did put in an atrocious campaign. They didn't even bring up anything that could be used against Howard, instead when Howard lied that interest rates would rise under Latham, merely said "no, they won't! Look, economists agree!" which was a pretty conclusive rebuttal, but there was so much unmined territory. They didn't mention the children-overboard thing, or the detention centre thing, or pretty much anything else to differentiate themselves from Howard.
I'd say the vast majority of people that voted for Howard didn't do so because they love him, but rather because Australians have a severe tendency not to vote out incumbent Prime Ministers, and since we don't have a term limit like the US, they stay around for ages. Also, they couldn't see much different between Howard and Latham (a fair enough viewpoint), so just went "the devil I know".
Both Labour and Liberal have been "small-issue" parties since Paul Keating was booted out of office, and it's pissing me off. It would be nice if one of the parties could tell us where we're gonna be in ten years, or how they're gonna try and fix certain problems, rather than focusing on issues that mean nothing to most of us, such as freeway tolls (for one specific freeway) and logging (in one specific state).
I don't mind being an ally of the USA, I just mind that Howard is a boot-licking toady. Obviously our and the US's interests will not coincide all the time. It would seem Howard is still waiting for that spine donor.
Incidentally, I'm more than happy to answer questions posed by foreign Massassians about our political system.
Wookie: Yeah, we have more than 2 parties (as do you) but the different is we have a preferential, rather than a "first party past the post" system. So voting for the greens, say, isn't "throwing your vote away" because they don't have to get over half the vote to do anything; even a party with 10% of the vote can get a few senators. And even if the greens don't get anything, your vote can "flow on" to another party, such as Labour.
There are quirks, though. Parties get to assign preferences, so unless you indicate your own when voting (which requires numbering about 65 boxes), your preferences get assigned according to the party you vote for's preferences. Thus Family First, who got maybe 2% of the vote, are probably getting a senator, because they made preference deals with other parties.