They Australian system is very generous. This is mostly due to the fact that our population growth is almost at a standstill, so apart from imigration, our population is not growing. Long term, this leads to serious social issues with the younger generations having to somehow provide for the older ones with social services etc.
In my opinion with regard to childcare centres, as most parents do, I believe the maximum amount of time should be spent with kids, otherwise, as has been mentioned, why bother having them?
Speaking for myself, my kids have had daycare in the past while I was a single parent and either working or studying full time. Both of my sons are doing very well for themselves both socially and academically. In fact, my oldest is in the top 5% for his agegroup with numeroucy and is reading at 15yr old level. He is ten. My 9yr old is achieving highly in maths and is reading at 13yr old level. He's in the middle of the first book in LOTR atm.
Do I think they've suffered as a result of having people other than parents care for them? No. Do I think they've benefited? Maybe, although I don't think it's made that much difference.
As to parents having a coffee while their kids are in daycare? Well, I think that's been covered already.