You couldn't pay me to be a selector for the time being. I don't think Australian cricket is too far off being competitive. IMO the best 11 they could field, and with only minimal disruption...
Katich
Khawaja
Watson
Clarke
M. Hussey
D. Hussey
Haddin
Hauritz
Johnson
Harris
Bollinger
Khawaja was an opener throughout his entire junior career and still opens at grade level. He bats down the order for NSW to accommodate Hughes and Jaques. I don't rate him as a test number 3, purely on the fact he doesn't have that extra intimidating gear that Watson does.
Watson is your next long term number 3. Ideally you want someone who can face the new ball and who can also take the attack to the opposition. He is the man to lead Australia forward and our most important player.
To all he Clarke bashes, the stats don't lie. This man is our best batsman. An average of 72 in 2006, 80 in 2007, 51 in 2008, 55 last year and 59 this year prior to the Indian tour. He has the highest average of any batsman (besides Jaques) to have played for Australia over the past 5 years. He is going through a form slump, however, name a player hasn't?
D. Hussey is IMO the only other batsman at state level worthy of a baggy green. Averages 55 and has consistently been among the countries top run scorers for the last 5 years. Furgeson's career average (35), playing mostly on the batting paradise that is the Adelaide oval is to put it bluntly - disgraceful. Players such as White, Bailey, Shaun Marsh simply don't deserve baggy greens. Australia would, IMO, be much better served squeezing 2 years out of a proven performer such as DHussey. By that stage young players such as Lynn, Smith, Hughes, Maddinson and Mitch Marsh would be hardened by another season or 2 of state cricket.
My smokey is Mark Cosgrove. Along with Clarke and Watson, he is the best batsmen of an otherwise lackluster generation(mid to late 20s). Cricket Australia have tried everything to sort out his weight issues, and if he hasn't shed the his keg by now I don't think he ever will. IMO they need have a long, hard think about his worth to the test team.
The sacking of Hauritz was one of the biggest selection blunders of our time. He possess numbers comparable to, if not better than our best offies of yesteryear (Yardley, May and and Mallett). He strikes more often than all of them (requiring nearly 10 balls less per wicket), and at 17 tests he has more wickets than all bar Mallett. He failed in India, yet name an Australian spinner that has fired? Not even Warnie managed success over there. I just can't fathom how players such as Beer and Doherty could jump him on these numbers. Don't even get me started on how O'Keefe (ave 24 with the ball, 47 with the bat at first class) has gone from Australia A's best bowler to left right out.