sbiddle: 65ms is to a server in Sydney, it could never have been 5ms.
Before the DLM change you would have likely been seeing ~51ms to Sydney and you've now got an extra 14ms RTT with the 8ms interleaving.
Your traffic also has to get from Christchurch to Auckland before it can travel to Sydney.
Uhh by reading the OP it looks like he isn't commenting on his ping to sydney. If you look at the MTR test it shows a ~40ms ping from his router to the ISP he is with. Previously this used to be far, far lower.