So I came to this late and just read the entire thread today! Firstly, with parents who are getting on a bit, and who travel in paid J when they come to visit us in Aus, I can really empathise. I know that the same situation would be extremely upsetting for my folks (and by extension, for me).
I have to say though, I'm surprised that people think the compensation ultimately (if belatedly) provided was inadequate. I suppose it's a great example of the importance of getting customer service responses right as soon as an incident occurs. Once the customers get really upset, there is often no way of retrieving the situation, and it looks like that's what's happened here.
Just to explain why I think the compensation was fair: the affected flight constituted about 40% of the flying time on the itinerary, and the fare for the whole lot ticket was $7,500. As such I'd say it's reasonable to put a price of $3,000 on the fare paid for the affected flight. If I understand correctly, the cash compensation provided was $USD700 + AUD$1,250 = about AUD$2,100, or 70% of the fare paid. That in itself would probably have been seen as reasonable if it had been offered up front. Add to that a $500 voucher and 50,000 points (worth at least another $500), and the total value of the compensation is more than the cost of the fare paid for this flight.
I realise these people are now so irate with QF that they don't plan to use the voucher or points. I really hope they reconsider though, as if they don't use them, the only winner is Qantas.