I think their batting is still strong and will copme good if given time (from that point of view it's unfortunate for them Katich is injured), so I imagine they'll pick a new opener (Hughes?) and possibly a replacement for North too.
Bowling wise their all over the place, I think they probablly need to pick 4 seamers (plus Watson) and just make do with batsmen who bowl on the spinner front, as they don't have anyone (with the possible exception of Hauritz) worth a place in the 11.
I'd go for
Watson
Hughes
Ponting
Clarke
Hussey
North/Khawaja/Ferguson/Smith
Haddin
Harris
Siddle
Then two from Hauritz/Hilfenhaus/George/Copeland/Clark etc depending on form and the wicket.