You are wrong (imo).
You're missing the key point through all of this. I understand it aggrevates you because you want your money back BUT you received the TP as a replacement for a FLIGHT CREDIT. This is the important part. A flight CREDIT.
Flight credits have NEVER (that I am aware of anyway) been refundable to the passenger. As noted in another thread if you had booked a fully refundable fare (OR QF cancelled a flight on your booking) you should have been offered a full refund at the time of the cancel. That was your option then and has been a policy in place for gosh 18 months? Now yes, you had to call(and that is a whole other mess that we all agree on) but it definitely was offered. I took a couple myself and others I elected to take as credits.
Anyway so you have a TP that has been provided in lieu of a flight credit of the money you paid to QF for the original booking. Since you either did not take the original refund option, or it was not offered for some reason(I don't know the exact situation and I don't want to assume), that was off the table.
So you create a new booking including the TP. Fine, makes sense.
However even if you booked a fully refundable ticket with this form of payment, all refunds are made to the *original form(s) of payment* as has ALWAYS been the case. Usually it's a CC, or in this case, to a travel pass. ie: a flight credit and/or any excess would have gone back to the other form of payment, such as CC.
In my view this is absolutely consistent with both the T&C and common practice.
I understand your frustration, though you know your TP can be used to book QF and partner services to wherever it is you want to go that you say QF doesn't serve... eg if you want to go to Kiev, you could book QF/BA via LHR using the TP. That's the whole point of alliances.
The reality is you tried (and I fully appreciate the thinking involved) to get around the fact you have a flight credit you do not want to use and would rather have the cash back from. It didn't work out the way you expected. Well I'm not sure how QF are the bad guys here tbh. Obviously your mileage varies.
However do feel free to try it with fair trade commission or whoever.