Australia had a referendum on this issue 10 years ago and it failed mainly due to infighting within the republican movement and scaremongering from the monarchists.
The issue is slowly getting revived and if Rudd is re-elected I believe he will make it a priority.
However, far from an act of disrespect, the Queen has made numerous statements encouraging the independence of Australia and viewed the drive toward a Republic as a natural maturing of the nation.
Ultimately it will happen and I believe the sooner the better.
This whole issue frustrates me though because it reveals how stagnant and exclusive the political process has remained in almost all modern democracies.
For example, improvements in information technology have revolutionized our lives but our form of government remains virtually unchanged since ancient Roman times. The internet would allow cost efficient referendums to be held almost every week and the true voice of the people could be heard on all issues ranging from border protection, constitutional reform and illicit drug policy.