I'll provide an insight into Australian culture which is why we are not shocked by this: Australians favour community over individuality far more than Americans, and by and large are prepared to sacrifice more individual freedoms for the sake of others. The extent, of course, varies from person to person.
Australia has been very successful in eradicating COVID (until Delta) and the lockdowns have been generally been (but not always) short and have left us with far more freedoms than many parts of the US have. While the US was locked down with thousands of deaths a day we were enjoying stadiums of 50,000 people. The death toll in Australia is 1,000 while in the US it is >600,000. Australia has avoided a recession, though its economy has been greatly harmed in some sectors such as tourism.
With regards to the specific topic there is a community (and legal) expectation that if you come from a higher-risk COVID zone that you enter quarantine of some sort (either hotel quarantine or home quarantine) to protect your community. That has generally been for two weeks. Unfortunately not everyone abides by this and escapes have been very rare but do happen: police have attended homes at random to ensure compliance with the quarantine orders. The app is solely for those in quarantine to self-report their status and not waste police presence. Note that community faith in police, and how they police, is far far better than in the US.
Again it is about a sense of community and protecting your friends, family, colleagues and loved ones. People by the majority are very prepared to enter quarantine for short periods to protect others and the app provides compliance to that. Non-compliance to these community (and legal) expectations are very rare given the tens/hundreds of thousands who have been through hotel quarantine.
Not everything we've done has been wholly successful and the Delta strain is forcing a rethink. There's a lot of angst in Australia right now about what the strategy should be and our vaccination rates are low (ish) due to being so successful at total eradication of COVID for over a year.
I hope this might give some insight into why many Australians are not concerned about the story at hand - other than it being a misrepresentation of what's happening, it's also that the community expectations are simply different to America, and we're kind of happy about it that way too.