Well 'loose' is a matter of judgement. But as you correctly point out, medical use is ludicrously limited. Also 'more or less decriminalised' is an exaggeration, given the number of people I know with criminal records due to mere use (I live in Northern NSW). Cops turn a blind eye when it's useful for tourism (eg. Mardi Grass), but very freely arrest at other times. Of course you're pretty much OK if you wear a suit, but that's not specific to marijuana.

But however you judge that, the fact is that the majority of the population would like the laws much looser than they are, and without something like a CI process, it's not permitted.