You become Godfather/assertive or not, India will act as buffer for all South east Asian/ Australasian nations who are uneasy with China's abrupt military rise. They know it, they know it because any conflict in south east Asia is going to affect India significantly. This is where they are betting and there is nothing wrong in their approach. He might be pretending casual with what he is saying but technically he right.
It will be interesting to see how China is going to make India preoccupied with some low intensity conflicts or bluffs of cordial diplomacy or the timing when she will push south east Asian countries towards the wall, when India will be bogged down because of her own critical engagements; which may or may not be beacause of China's direct or indirect involvement .
Australia should teeth its self to face challenges of future without relying on the sheer luck of India or USA will be readily available at the times of acute necessity.