That's right, you read it correctly. When traveling to and around Australia, you have to keep in mind the size of the country. It may look like a little island on the map, but many people are not aware that it is almost as large as the continental United States. That means you really need to plan out how long you have and where you want to go. It is simply impossible to cram it all into a week or two. With the majority of the population located on the coastline, this leaves vast distances between many destinations. You'll need to determine if you're going to drive or fly between the cities you want to see. Of course, there are pros and cons to both options - aren't there always? By driving, you get to see and experience more of the local sights. Just remember, in Australia you drive on the left hand side of the road. That might make it a bit more difficult for some people to sit back and enjoy the drive. Flying, on the other hand, allows you to cover larger distances in a much shorter time frame, giving you more time at your actual destination.
To give you a reference for size, locations and distances between major cities, have a look at this handy map.
This map is divided into Travel Destinations 1 through 10 to help you determine which areas are geographically feasible to visit in one trip. For example, the approximate road distance between Sydney and Cairns is 2640 km (1637 miles), so obviously it's not just up the road. As you see, if you want to have an enjoyable vacation, size really DOES matter!