Sorry to hear that, buddy. It's your call, but for a visa to be unable to be processed due to people moving is the biggest load of BS I ever heard.

So these embassy staff basically get a holiday while all this is happening?
It all depends on how badly you want to go, I guess. Doing a postgrad here is also worthwhile, but to fall at the final (bureaucratic) hurdle when everything's been approved just leaves you with a sour taste in your mouth. It's not exactly easy to get student visas to OZ as well, it's a shame. Those two universities you got into are the two best ones in Sydney, and one of them (UTS) is the best business school in Australia.
Sorry to hear that mate.