Specifically with reference to Drops, I think the interest levels are still there, it is just that the number of high quality domains dropping has reduced. Part of this may be influenced by
auDA Auto Renewal Policy. This may have an impact with large Registrars like Melbourne IT that have a lot of corporate clients who hold quality domains.
As for the general market, I am regularly dealing with decent transactions of .au domains, I negotiated a sale at $20,000 today. As some of the other members have said buyers want confidentiality so all the big deals cant be reported.