Per the C2 Melbourne Trams, I would say you are correct.
Although it's going to be interesting to see how they go with Pans vs Trolley Poles
The only real problem with a Vario at Loftus is the storage problem. There is no where a 30m long tram could be parked.
Yes the overhead is not panto completely compatible, but fixing that is a 'work in progress'. Yes the main running shed can't have pantograph run it as the wire is in a 'slot' at the doors. Fixable with a power saw
But that fact that half of the tram museum collection is already stored off site is a bigger problem.
But that said, IMHO, getting a Vario while it's still in working order is mega important - as restoring a dead hulk in the future is simply not going to happen.
The Varios are an important piece of Sydney tramway history - they led the tramway revival.
Lobby every one you can think of that an example should be preserved - IN RUNNING ORDER. Even if they have to keep it at Darling Harbour.