Reap
That's one thing we disagree on. The flares are far too big and your earlier point about reduction in track doesn't measure up. The guards overhand the widest wheels Holden fit by a fair bit already - reducing the flare won't mean track has to reduce. The CD figure is affected by the flares and I reckon Holden will do everything possible within economic limits, to reduce the CD, even by only .01, if it can increase fuel efficiency.
The article goes into some detail about those flares and I think what they say makes sense. Holden likes the flares but recognises the affect they have on wind resistance. Look at the re-design of the front lower corners of the front bumper on the VE 2. It was a tiny adjustment, but it was done, in part, to reduce turbulence in that region that increased drag. The guards will get a re-design anyway as part of the model update - the VE front is tired and dated and if this model has to survive three or four years until the next all new model, the design has to undergo major styling changes. I'm sure all sheet metal forward of the windscreen will change. I reckon the rabbit's ears will be reduced, not removed, but they will be much tighter in against the guards and look much neater. (I guess it's obvious, but I hate the current front flares - I think they are absurdly excessive.)