I agree with what you are saying, we were producing average cars in an industry that was slowly becoming unprofitable.
With that in mind, there should have been an attempt to rebrand the fading images of Holden and Ford, whether it be focusing on luxury, performance, economy, etc.
But no. GM were too lazy to do that, and the government merely complied. Now all that is left is a name, a badge they merely place on their American cars (although, to be fair, R&D still exists here).
Fortunately, the industry still survives with a plethora of small-scale companies. I would like to see these Australian made and owned companies grow and take over the gap that has been left in the car industry (that way it might still have a chance). And perhaps do away with the need for government subsidies.
As for the salary aspect, that is also true. If you're demanding $20-25/hour for a car that can built offshore by someone willing to work for $8/hour, is that company likely to continuously support you in the long term? Basically an impossible dream...