A lot of Australian founders really didn't like that for the most part, but a couple (whom I'm now friends with!) took it really well, pivoted, or decided to do something else entirely, and they thanked me for the feedback (and the feedback of the mentors that said similar things!).
Mentors giving feedback like that was often met with incredulity and hurt. "You are NOT your idea" is really important, but I have a theory that Australia's (especially Brisbane!) startup scene is so small, and so fledgling, that we're still learning :)
For what it's worth, I was told my idea was good, but my numbers (which were realistic, based on exits from companies that were similar but not the same, about $6-9mil after 2-3 years) were said to be too small for venture capital to try.
VC's and investors in Australia are also learning, and are a lot less willing to give an idea money to try. But that's okay! Things will change, given time and effort.