I see no reason why it would not also lead to a transferral of that charge to other literatures and cultures, perhaps ones that are just as great. The other trend Robert mentions is for students to be fascinated by their own roots. This strikes me as a mostly beneficial development. It eroticises those cultural sources that actually contribute to Australian culture rather than those of the great empires of the day. Far from making cultural dialogue more difficult, its a sound basis for it.
Students invent a sense of who they are.
That gives them confidence. Anglos with precarious senses of identity. Whenever I return to my home town of Newcastle and see people I used to know, what strikes me is the sense of cultural unease, and the way a lack of attention to the roots and routes of the cultural past contribute to that unease, and the reaction that flows from it. The points of conflict change, as to the points of erotic charge. It's important not to lose continuity altogether.