Jesse, my view is definitely the latter, i.e. that policies should give all low-carbon technologies meeting a common-sense set of criteria an equal opportunity to become competitive. If we are going to have subsidies, feed-in tariffs, production credits etc. then they must be available equally across these qualifying technologies.
Your point about the total amount of subsidies is well made -- it doesn't seem that big. But if its done in a way that ultimately makes the subsidizing economy -- be it the US, Australia or whatever -- uncompetitive with high-carbon economies that have no such subsidies, then we all end up losing.