It's not surprising that a local bricks and mortar shop would favour region-coded BluRay over region-free HD-DVD. And, although it should be surprising that they think they can, C'nut-like, tell consumers what they want, that has been a recurring feature of Australian retailing for decades.
I get almost all of my CDs either at gigs (jazz) or online from the US. I have been told Sanity actually have a good jazz range, but have never been in. Readings is the standard place for classical recordings in Melbourne. The ABC [our national broadcaster] is actually the leading local record label for jazz and classical, and of course their shops stock their releases.
For DVD, I import most from the US and UK. Borders actually has a good range.
One good reason to stay away from JB is the sticky price labels they place on the CD and DVD cases. It is usually impossible to get them off without destroying the case. Add in the cost of a new case, and the trouble, and it suddenly doesn't seem that cheap.