Does anyone know if this deal makes a good deal now that they partner with Etihad? Can this be used to fly to Europe or is the value just not there?
Very poor value. The sweet spot is 40000 miles with 50% bonus, so you get 60000 miles for €1000, (USD$1130, AUD$1447!), the maximum you can buy per transaction is 60000. I'm not sure if you can buy more than 1 transaction and still get the bonus, but assume you can, the cheapest mile will be ~ 1.88 cents USD. It's cheaper than what AA is offering at the moment.
But for redemption with EY, it's quite expensive. From the award chart, it looks like they zoned it according to distance from AUH. So from AUS to Europe, you will need to book 2 tickets, with combined miles ~150k - 165k one way on business, and you can't even redeem first class!
Comparatively, even tho AA is selling miles at ~2.1 cents each, AA is much cheaper in terms of miles. Business class from AUS to Europe is only 75k one way, that's more than half as much as Alitalia! And you can even get first class for 100k one way! Overall, the value is much better with AA if EY is what you are after.