I'd like to see any long-term aussie residents (who aren't citizens) be welcomed to compete, just like they are in any other event. But where to draw the line with surfing is a tough call... I think Aus301 is right and you wouldn't want to be the one knocked out by 2 surfers in the first round who aren't even eligible for the title (though with only 4 girls surfing at qld titles this year, I would have preferred for the girls like Sarah and Molly Mason to have been encouraged to compete and boost numbers (regardless of whether they knocked us out), than to have waited all morning for a single straight final. It's always going to be a tough call with surfing and pluses and minuses to both options...
...but opening up the racing would be better for everyone. Bigger races, a higher level of competition (although its pretty damn high already), better exposure for our sport and fun for everyone who wants to have a go.
Bigger numbers could potentially reduce to costs for all racers, so its win win for everyone. Currently there's 150 allocated places in the marathon (though some probably wont be filled): 150x$110 =$16,500, plus 118 in the tech race ($12,980), all up that's very close to $30k to run 2 races, with minimal provision of water safety (if last year is a guide).
If you opened up the tech race to the same number of qualifiers as the marathon, then add say 50 extra spots available in both, suddenly you've got 400 total spots available, for minimal extra costs. If you could fill the event, the equivalent cost to paddlers is down to $75 per race and economising on team uniforms/comp shirts etc. for people who do both, you should be able to get away with $120-125 package entry.
Couple of 2-3 lap heats for everyone to 'warm up' in the tech race, with option for state team members to progress straight the the finals (regardless of heat placing) and tight racing, keeping it exciting in the battle for the remaining spots. And maybe reduce the length of the final to 3-4 laps as everyone will already be fatigued.
Downwind/distance race extra numbers would have very little impact on the cost to run the event (maybe and extra 1 or 2 jet skis/boats on the water, but that's pretty much it. With numbers starting to push the 100 mark in some local events across the country, how good would it be to culminate each year with the biggest event on the calendar, and lining up with 200+ other sup's, like Maui's International Paddleboard chamionships (previously Naish race), the Olukai, and take your pick of the Elite, Open and distance races at BOP. Looking forward to the day we get events that size running here!
Personally, I doubt there will be any changes for this years Aussies (I'd like to be proven wrong) but hopefully it will be a consideration for the future.... (I might get in trouble for suggesting this

but maybe everyone whose not racing the marathon, but would like to, should just turn up at the start line "for an organised, but independent downwinder"

and paddle alongside the racers - its a free ocean after all - and the more numbers out there paddling, the better the spectacle for those watching. I don't think I heard anyone complain about Jacko unofficially paddling alongside the pack in the marathon at last years Aussies and providing plenty of encouragement to the mid-pack racers along the way.)