Most of that is common sense really, save the point about Watson being banned from bowling - I don't personally think his conversion rate and recent form are good enough that he should be keeping a younger player out of the side if playing as a batsman alone, whilst his bowling is a genuine weapon to add to the Aussie arsenal.
Gut instinct says Australia are unlikely to win in 2013; they'd need two players - someone like Maddison or Khawaja - to take to Test cricket exceptionally well and exceptionally quickly to give their top order the necessary stability against the stronger, deeper England bowling resources. That said, if any two out of - Strauss doesn't recover his form, Morgan doesn't find his, Pietersen grows old quickly - happen then England might be in the same position top order wise. Okay, I'd say our bowling is still the stronger, but it'd become a shoot out.