JS Mill: "I do think that it is all rather unpleasant and undignified for the entire country to be effectively held to ransom by three people who represent just 2% of the population."

The country is not being "held to ransom" by anyone. The Electoral Office has not yet declared an election result. This has nothing whatsoever to do with the Independents.

Briar Rose - I am trying to work out what you mean by "This has nothing whatsoever to do with the Independents."
If you are right then someone ought to tell Abbott and Gillard that they can ignore Katter, Windsor and Oakeshott (and Wilkie). Someone also should advise Lateline/QandA/Meet the Press and every other media punditry outlet that they can stop trying to talk to these guys because they are irrelevant. Of course, the Independents' list of demands can be immediately binned. Having the support of the independents is not going to mean anyone going to the GG or appearing on the press and announcing a resignation.
Nor is it going to put an end to the speculation and uncertainty.
You really don't think that maybe it has just a little bit to do with the Independents?

The Independents are currently serving one of the best causes that they can - to remind people that fail to be able to see beyond the tip of their nose that there is more to this country than a new surburban rail link. (yes I'm from the country)

Many many city jobs depend on things produced around the countryside (exporting them, manufacturing them, selling them), those in turn generate the need for shopping, health services, financial services. There is a huge flow-on effect beyond the immediate area where things are produced. When government formulates policy and legislation, these things can readily be forgotten. The Independents (and even more so the media that is hanging off them), are reminding everyone about where much of this starts. That cant be a bad thing, for the countryside and for the city areas in the longer term.

One thing that I think all sides should bear in mind is that the Independents are mostly conservative (which is why most spring from the National Party originally and not Labor). They are unlikely to pick sides with a party who plans significant change - we are unlikely to see an ETS this term (and probably a good thing, as the mechanism hasnt been properly worked out yet: needs a few more years of debating). Likewise we are unlikely to see significant new taxes etc. Its likely to be a time for both sides to take a bit of a hiatus and have the opportunity to fine-tune more significant policy for the next election in 3 years time. This could be a win-win for everyone.