I have been doing English Language through Distance Ed this year, due to a timetable clash.
If you are desperate to avoid Lit or English, it is the choice for you. But things can get very tough, especially in terms of time management, when you're doing Distance Ed. You really have to make an effort to stay on top of the workload, which you would find a little heavier than if you were doing the subject in a classroom. You can call the teacher there and ask questions anytime you want, so it's up to you to establish the amount of teacher/student contact. I was "threatened" with a fail for Unit 3 purely because I was so many weeks behind on my weekly worksets, despite my high SAC results. And on the note of SACs - they are ALL open book in Unit 3, but closed book in Unit 4. I suspect VCAA would not moderate Distance Ed's SACs all too favourably at all, so I feel a little under pressure to score very high in the exam at the moment.
I have been working one-on-one with a tutor for this subject this year - you are right, there aren't many! But my tutor holds a PhD and is a lecturer in Linguistics at Latrobe, and he is excellent. He is based in Doncaster East - I can PM you his details if you want.