Yes hypothetical examples can be used, but only sometimes...
In that specific question I wouldn't, I would answer like this...
One effect of statutory interpretation is that the meaning of the legislation may be narrowed. This happens when words in legislation are given a more specific meaning, enabling judges to resolve a dispute by seeing whether the facts of their case fall with that meaning or outside that meaning. For example, in Dieng v Tarola (1992) or the Studded Belt case, precedent was set regarding the meaning of the work 'weapon', as there was no definition in the legislation, so the judge defined a weapon as " an object with a primary use as a weapon with no other primary use" to determine if the studded belt fitted this definition. This narrowed the scope of the law
I wouldn't really talk about the meaning being broadened because that doesn't happen very often, and you would need a hypothetical example, i would just make another point like it may prompt parliament to change the law, where examples are plentiful such as after Kevin and Jennifer parliament amended to Marriage Act in 2003 to include post operative transsexuals
For Your other question..
I would start with general statement that clearly states which method you think is more effective
Then one reason why you believe this, as well as a negative point for the lesser point and how the one you believe is better is more effective for this reason
Do this as many times depending on the marks
Hope all this helps
Firstly, I think your detail and clarity are amazing - and with your previous answer, too. I was going to say a couple of different things from you, though (I totally agree with everything else) so I'll just put them out there for comparison
I agree that a real example shows knowledge in a way that a hypothetical doesn't; but, I wouldn't be prejudiced against hypotheticals because of that. Especially if the hypothetical is an extrapolation of a real case, so you're showing knowledge there and additional illustration. Different, of course, if the question asks for a real example.
(Quick side note: was 'Dieng' a typo? And just go for either 'Deing v Tarola' or 'Studded Belt Case' in the exam because it doesn't matter either way and only using one is quicker
)
Also, with the Marriage Act, the only statutory amendment was actually to specify that marriage had to be between one man and one woman - the Howard Government tried to include a definition of man and woman based on chromosomes, but they got shouted down and withdrew it. The flexible definition of gender is still in common law.
Totally agree with your advice on the second question. I'd just add to the OP that structuring by reference to the task word or task words is generally best. Once you get confident you can integrate them a little. So, for this one, there are two task words: differentiate, and argue (explain + effective). You can do a section on differences (estimating around 2-4 marks logically), then do a section on comparative strengths and weaknesses (estimating around 3-6 marks logically). Once you get a bit more confident with structure, you can integrate: for instance, begin with a difference, then go straight into eval on that difference; next paragraph, next difference. But integrating task words is harder than doing them one at a time.