The Sydney-Canberra air route is not very well serviced - until VB started running E-jets there just recently it was only turboprops. The pollies who want a bit of comfort would obviously pick a VFT over a turboprop, so there is that captive market.
Obviously it would be better to go to Melbourne or Brisbane, but as everyone knows who has studied railway history, the only private companies that succeed are the ones that start small.
My first flight to Canberra was in 1959 with Ansett-ANA in Fokker Freindship VH-FNA, but there were no jets on domestic services then.
Since then on flights from Sydney and Melbourne I think I've had jets as often as turboprops, DC-9s, 727s, 737s and so on. I may have flown on a Fokker 50 but F27s were more common. Of course I've flown on Dash 8s and don't mind them much.
I often pass or see the airport and it is rare not to have a 737 at the terminal, although most of these may not be on Sydney services. I've never seen an Embraer jet in Canberra, although I check out every Virgin jet I see, all of them so far have been 737s of some type.
The most memorable flight was on an RAAF 707 when I was not only allowed into the cockpit, but was allowed to stand there all the way into a touchdown. It gave me a different view of standard landing precautions.
The Speedrail proposal had the line entering the ACT near the Federal Highway and running to the airport East of Mt Majura and Mt Ainslie. The illustration showed the train passing the Defence Campbell Park offices which overlook the airport.
There was not then, nor is there now, a serious intention to run into Civic, although it is possible. The Canberra Airport owners want it to be a central transport hub, but at the moment no Action buses even run there. This will need to change even to properly service the existing offices there.