I actually think our public transport gets a worse rep than it deserves. It does need improvements of course as there are some problems with it - trains aren't frequent enough (hence the overcrowding), they should run 24 hours, and the punctuality/cancellations particularly in summer is really bad.
But it still holds up against alot of other cities I've been to because of a few other factors. Firstly, one ticketing system across all modes of transport (and only 2 zones, as opposed to 6 in London for example) makes it one of the most simple & cheap ticketing systems I've come across. Most cities you need to buy a separate ticket on buses to that on trains and some even different tickets between underground & above ground train services. To buy one ticket and be able to jump on all trains, buses & trams with it is pretty good.
The other thing is that coverage is pretty good. In addition to the tram system being the world's biggest, providing pretty good inner city coverage, having 16 metropolitan train lines is also pretty good. Los Angeles which has a sprawl about 4 times the size of Melbourne only has 5-6 train lines, no trams, and their buses pretty much run up & down one road each so if you need to take 2 roads that's 2 buses. It's also an easy train system to follow as all services start in the city loop and just sprout out to a different outer suburb.
But we could definitely do with trains running more frequently to solve overcrowding, both trains & trams should run later than 1am, and they gotta do something about trains breaking down and tracks buckling in the heat during summer.
PS. I love that heritage trams still run on the St Kilda to North Richmond route. I catch them to work from Chapel St, and work on Church St. My office has a great view overlooking Richmond with the city skyline in the background, and those old green & gold rattlers running up & down Church St kinda makes the view I reckon, I love them! Such a part of Melbourne. But I heard in 2012 they are being retired