I'm saddened by this turn of events, although not surprised since there wasn't much forum activity.
I thought that the "camp" format out in Wagga was a winner and a welcome diversion from the usual inner-city events. On the other hand, Wagga Wagga is an easy 3 hours from my base in Canberra, whereas it's about 5 1/2 hours from Melbourne or Sydney.
Have the organisers considered Canberra as a venue? Unlike Wagga it's not equidistant from Sydney & Melbourne (by road), but it has a few advantages over Wagga:
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Only 3 1/2 hours from Sydney on quality roads
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Larger, better-serviced domestic airport with more flights between other state capitals
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More and better accommodation options
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Retains the semi-rural feel of Wagga, but with more city conveniences
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2 large universities and multiple minor ones
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Many gov't departments with full-time IT security staff
I may be biased as a Canberran, but I would rather visit a quiet remote location than deal with Sydney's crowds, public transport (or e-tag-only toll roads) and pricey accommodation.
Having said all this, if the choice is between Sydney and Melbourne, I vote Melbourne (at least it's easy to navigate for us simple country folk).