The ABC Online has a news story about objections by the Fadden and Maccarthur communities to a phone tower being placed on a hill near a child care centre given planning approval despite strong opposition.
I wish this group the best of luck if they wish to pursue a legal challenge, from my past involvement in similar circumstances, the Federal Communications Act and related codes of practice virtually guarantees the Telcos the ability to put such facilities anywhere they want.
Naturally the current Stanhope Government is not going to object, especially with the new money spinner of their Utilities (Network Facilities Tax) Act 2006.
In terms of disguising telecommunications towers Larson Camouflage in Arizona, USA seems to do a resonable job. Though I am not sure that there would be much call for towers shaped like giant cacti in this country.