Well the losses of Warne, McGrath, Langer etc out of the side from previous years has definately hurt them, as it would any side that loses class like that.
But they have played with a distinct lack of 'mongrel' ever since India pulled out the race card after Sydney and had a big whinge and threw the toys out of the pram.
I think the Australian's look mentally jaded and pretty unsure as to how to go about their game since then.
Our own soft, pansy, PC-plod media can take credit for that, India have always been first class whingers in cricket the moment things don't go their way, so their pious little spat was nothing particularly unusual.
But the way many sections of this country's media - many with the combined cricket or sporting knowledge of a freshly laid dog turd - turned on the way our players played the game was disgraceful, especially Peter Roebuck, who was a complete nonentity as a cricketer, a convicted child beater as a cricket coach, who makes a buck living off the gravy train of our cricket/cricketers but chooses to demonise them to make himself look good.
I think the IPL may have a little distraction value, but I doubt it's the key reason why they're struggling this season.