Reading between the lines
The word on the street here in Oz is that the visa was just rejected because it was put in too late for a business application, not because of any real concerns. If you read the original blog you can see that there doesn't seem to be a lot of firm information about why the visa was rejection - mainly speculation.
I think the Australian immigration system has been pretty screwed over the last few years - but I think this is one case where they're not particularly to blame.