I don't have a strong opinion of Shorten one way or the other, but I've read a lot of people express a similar POV and it strikes me as extremely naive.
If you went into politics with a view to die on your sword rather than compromise any of your values you'd have a very short career. Losing the battle to win the war is the only way to achieve anything.
I mean, be realistic. If the ALP had blocked the bill it would be political suicide for them. For now some nerds (us) are debating the issue on an obscure forum. The alternative would be for every man and his dog having our corrupt media ram the "Labor has made it easier for terrorists to kill you" story down their throat for the next few months.