Fed square is a beautiful place (and no shopping centre at all as suggested in the article). There are art galleries, lots of restaurants and bars, the tourist information, and lots of public space which is a meeting point and event space with a stage (we watch the Australian Open in a public viewing), cultural days, street performers - a central hub in the city.
I am a Melbourne local and even if the architecture has been controversial it is now widely accepted. I personally think it is a great spot in Melbourne and the architecture as a whole looks beautiful.
The Apple design disrespects the feel and atmosphere of the place. I would even go that far and say that there should be no store on Federation Square ... we have Burke Street Mall for that! Kicking out an Aboriginal Gallery in the process and totally demolishing that building. Right so that Melbourne protests!
The new design looks definitely better but the photos they released don't show a lot. On the other side I agree that the Yarra building does not help integrating Fed Square and the Yarra Promenade. A better link would be great but I rather have a cool bar there than an Apple store. Maybe it's time for the Genius Bar to serve food and drinks!