I'll just put this out there - NQE papers are very different to 'olympiad' papers, so what you guys found with the NQE and the school based olympiad program is dramatically different to what the real stuff's like. The actual olympiad training covers a completely different course, and the style of questions is very different - like the maths papers, the whole *blank stare* thing is common. They're higher order thinking, to say the least. I think last year the cut off for a gold at IPhO was 32/50 or something ridiculous, so that probably gives an indication of how hard it is! I think IMO was 32/42... so, to cut a long explanation short, the actual olympiad level papers (not the NQEs - these are just done to find scientific talent...) are incredibly, incredibly hard - it's absurd to say they're not level with IMO terms of difficulty in their fields. Then again, it's impossible to compare disciplines, but I don't think you should judge science olympiads on the NQEs. It's a completely different ballgame. That said, there are usually a few challenging questions on the physics and chemistry NQEs - keep in mind that you have half the time allowed for the national maths competitions, so there's less time to mull things over. The average scores at the summer school are also massively lower than those at the maths schools - in my opinion, our FSE was probably much harder than APhO and IPhO papers... and then our labs and exams at the summer school were ridiculously hard considering we'd only just been introduced to the topics. Actually, they were ridiculously hard anyway...
The required content to know for olympiad exams (the 'prerequisite') is really different from VCE. I can't comment about chemistry because I didn't go to the summer school for that (it was on at the same time as physics... all of the summer schools are on at the same time!), but in physics we did motion (rotational and translational), simple harmonic motion, fluid statics and dynamics, thermodynamics, a bit of statistical mechanics, AC circuits, DC circuits, electromagnetism, physical optics, geometrical optics, relativity, quantum, gaussian surfaces, statics, kinetics (really covered in thermodynamics though...) and waves. We also covered a fair bit of maths (mostly calculus, because that's really a toolbox for physics), including deriving moments of inertia, 3-D integration, 4 vectors, complex numbers, differential equations, vectors and a lot of trigonometric relations. Some of this is covered in VCE, most isn't, and the aspects which are included in the curriculum are completely brushed over and very superficial. I think chemistry had a lot to cover, and I heard one of the biol tutors (who did amazingly at IBO) say "Oh, our course only covers first year and some of the more interesting parts of 2nd year." But, as I said, the emphasis is on the problem solving, not the content... but you need to know the content to be able to attempt the questions!
Oh, and this guy went to physics camp this year, biology the year before and the maths camps before that. I think he's also been asked to teach some people oboe... (all of his diplomas and awards are on piano). There were a few people like him on physics camp - achieving incredible results in a variety of fields, but I won't give too much information because some of them live in Victoria...