Yes, I agree with you. I've heard the same things as you have.
I once helped a man who is a particular type of Computing Professional. (I know nothing about IT so I can't remember the details.) He wanted to settle in Melbourne and his particular type of IT skill was on the list for VIC. However VIC turned him down for State sponsorship, claiming that their own "expert panel" said there was no need for his particular wizardry in Melbourne. He himself had found 12 different, recent adverts for jobs in Melbourne where his own particular skill & experience would have been perfect.
So I then went through all the sponsorship Lists for all the other States and picked out all the ones where the man's particular occupation was listed. He then looked at the job-adverts in those States and apparently WA was the only place that actually needed his particular combination of skill and experience.