Just as an example, ADL -> MEL is 14k velocity points in economy (one way) while Qantas is 8k QFF points + $40 (or ~16k+ points with points + pay).
If I'm just wanting domestic travel, aren't I better off collecting velocity points? Or is there something I'm missing with Qantas classic rewards redemptions? I'm really looking to just travel on the cheap. Spending $80 + points for a return trip isn't really worth it when I can fly economy return for around $100.
Never worth it to spend points on domestic economy fares if you're of the mindset that you can fly economy return for $X. Just fly on sale fares. It might be worth it to spend on domestic economy if you're flying peak periods where fares are $300+ and classic rewards are still 8k QFF points + ~$40 taxes.
If your mindset is travelling for cheap, best option is to sell your points for cash and buy sale economy fares. Points are for business / first cabin rewards for long haul international flights.