You mention the future direction of Australia cricket - I refer you to another topic in this forum: "The way forward for Australian Cricket"
http://www.leagueunlimited.com/phpbb2/viewtopic.php?p=77904#77904
Regarding Katich's selection - it is for his bowling primarily. Based on his last season, he is a bowling allrounder. His batting capabilities diminished last season, averaging in the mid 30s in Pura Cup cricket. But his bowling average was in the mid 20s from recollection.
Brad Hogg is a certainty if MacGill is out, and then you have Katich whose bowling is impressive. I must say that Katich looks awkward at the bowling crease, and sometimes awkward to watch bat - but his bowling stats prove me wrong albeit at the moment. While his batting is not within a cricket pitch of where it should be to earn a batting place, it is for his bowling that he is selected - otherwise Love, Clarke, Perrin etc would all be factored into the situation.
Williams is the obvious call-up for the vacant spot - Lee and Bichel to open, with Williams as first change. We'll still win, but perhaps not by an innings, depending on how well the top order back-up from the 730 odd they scored last week, thanks largely to Hayden.
I'd like to see the selectors be less Queensland biased actually Kingling - you have every right to disagree, but Hohns (a Queenslander) wields his axe like an inebriated tree-logger at the moment - he wants Waugh gone, has already succeeded in ridding both Waughs from ODI cricket, and one Waugh from Tests - refuses to pick Bevan, dropped Slater, won't bring Steve Waugh back into ODI cricket despite him being the best local OD batsman last season, and refuses to let Michael Clarke get in ahead of Martin Love, despite Clarke's superior average (by 7 runs an innings), and Clarke's age being 8 years less.
Biased - yes, but towards Queensland.