I must admit that I've been finding this conversation quite amusing.
First, the notion that the current level crossing sign is the best because it was the result of a lot of research is interesting. My first information on the standard crossbuck dates from 1879 on the Pittsburgh, Cincinnati, & St Louis RR, and I'd bet it wasn't new at that time. The notion that some US railway came up with the absolute all time best level crossing design 140 years ago is ludicrous. It's likely that the current design tested 'best' precisely because it was familiar to the people being tested. It retains the familiar crossbuck, while surrounding it with a highly contrasting block to bring it out of the background.
Second, the idea that Australia has something to teach Europe about level crossing safety is wishful thinking. We only have a fraction of the road or rail traffic of Europe, and, generally our sightlines are generous. These factors mean that our accident rate should be, and is, much lower.
Third, IMHO, level crossings are one of the highest risk to safety of the modern Australian railway. This is because of 1) the increasing congestion in urban areas, leading to stacking over crossings even in plain roads, and 2) the increasing weight of road vehicles. I heartily support the Victorian government's program of level crossing removals and putting in flashing lights just about everywhere.
Fourth, Myrtone is quite correct to note that most other countries do not include text on the level crossing sign; the text is clearly not necessary. My reference (Railway Signalling & Interlocking, Ed by Theeg & Vlasenko) notes only five countries that include text: USA, Mexico, Australia, China, and Saudi Arabia. As an aside, I'd suspect that a big factor here is lack of concern in these countries about people who do not speak the dominant language.
Fifth, there is no reason why *removing* the text would make the sign more effective. My reference is very clear that there is already a significant national variation that road users must cope with. I don't see any point changing for changes sake.
However, I would note that Victoria has recently changed to dashed lines within intersections, just to be nationally consistent. IMHO just as pointless as removing the text from level crossing signs, and with no obvious safety benefits. But someone made the decision to do it. Ralph Waldo Emerson's quote springs to mind.