The change of studio is not really an improvement. The UK has a much better development scene than Australia at this point, most of the GTA series has been created by Rockstar North in Edinburgh, which is the same studio that created the classic puzzle game Lemmings. Codies themselves have a long history of successful games. Other acclaimed UK based developers include Eidos, who created Tomb Raider, Deus Ex, Hitman and Thief; Rare, who developed Golden Eye, Perfect Dark, Battletoads and Donkey Kong for Nintendo; or Creative Assembly, who have made the Total War series of strategy games.
Some great games have come out of Australian studios though; indeed Creative Assembly's latest Total War game was developed in Brisbane. You might remember Beam Software's Super International Cricket or the classic RPG Shadowrun (a brilliant game to hunt down if you're a retro gamer or ROM junkie). These games were developed by the studio formerly known as Melbourne House, now owned by Krome Studios, who are developing the hotly awaited Star Wars: The Force Unleashed. Last year's critically acclaimed adventure BioShock was developed by 2K's studios in Boston and Canberra; previous titles to come from this developer include the revolutionary System Shock and the superhero RPG Freedom Force, plus the very popular SWAT 4.
The studio of choice however is not one of these. It is Transmission Games, formerly known as IR Gurus. Australians might recognise this as the developer of the AFL Live/AFL Premiership series. Although this proves Transmission have experience working on sports games, none of the six games in the series could really be described in any way as impressive. In fact, quite explicitly, if you're after AI improvements, don't look here.
The change of studio is undeniably to cut costs and free up resources that could be directed at a more important project.
Personally, I still find BLIC07 to be a fun game. The learning curve is short, so it's only difficult for a weekend, but it remains fun. There is a glimmer of sound gameplay in there; the AI might often fail to set a mid on and mid off when firing down an over of yorkers, but sometimes, it does get it right, it bowls a good line and length to the right field and the game does become a bit harder to play. It feels a lot more real, if only for a spell. It really isn't too far from being a very good game and just the fact that they designed it for online play negates its biggest issues to a large extent.