Unfortunately, I’ll disagree with you completely. Seems the Queensland Body Corporate Commissioner’s ACT and adjudication rulings differ to your suggestions, and assumptions also.
If that’s the case, why aren’t the BCC adjudicating in your favour? I’d have thought you’d have gone to them with this rather that the local constabulary (who, quite rightly IMHO) have decided to stay well out of it.
The best way to do things isn’t always the strictly legal way. Most strata schemes in Australia are non-compliant with the laws in some way at some point. There are some battles where surrender is actually a victory. I would just let it go – small war, not many dead.