"Is there any advice you could give as as I am contemplating reapplying soon. I am perfectly prepared to take a step back and repeat an american internship but I dont want to compromise my training and future career by 'settling' with a bottom tier american program. I am, with all due modesty, a good candidate ...."
My advice to you is the same advice I give to our students from Columbia P & S Medical School (arguably a top 10 medical school in the US) is that you definitely need to "broaden your horizons". When I meet with our rising 4th year students interested in pursuing Orthopaedic surgery in May, I will speak alot about "passion". You have to have it to get through the system and obtain a residency.
Many of our students are fortunate enough to get "top" programs but not everyone can given the incredible competitive nature of this specialty. If they really want to be an orthopaedic surgeon, however, they do not view matching at any program "settling with a bottom tier program". Either you want it or you don't - and if you will only accept matching at a "top tier" program then you are setting yourself up for failure I'm afraid (whether you are Australian, American, or anything else).
You face much stiffer obstacles coming from training outside the US to be sure, but I fear you may be making the goal much less attainable by how you've set your standards.
wnl