Your case is very similar to mine. So, to confirm: The address: 9 DORCHESTER STREET SYDNEY NS B1P 5X2 is correct, since your wife's PR Card went through? Please confirm.
I too am confused what to do next. Maybe they haven't accepted my updated photos, but they haven't said anything either.
My suggestion for you would be to give it another week and then go for a PRTD (Travel Document) if you have travel plans in 3-4 weeks. Are you in India currently?
Others: Would appreciate if you had any other suggestions for us. Thanks.