The situation you describe CAN happen. BUT there are also 1,000's of flights a day where the hassles the OP's parents encountered DO NOT occur. Just my opinion but many posters on here seem to be running scared of what is actually a very rare occurence. The handling of the problem doesn't seem to have been well done but the problem is very rare.
But therein lies the issue!
Of course QF handles hundreds of flights per week, tens of thousands per year -and of course the vast majority depart and arrive on time. Some arrive a little late etc.
Occasionally things will go wrong. In this instance it was as a direct result of a QF decision. Again, that usually would go unnoticed by everyone on that flight.
The big differentiator between a full-service airline and an LCC is the service recovery when things do go awry.
The major difference between QF and other full-service airlines has (IMHO) been the handling of IRROPS and issues. I've also been of the opinion that status is one factor in avoiding situations such as EmilyP's parents found themselves in.
QF fares come at a premium, I do not believe that premium is solely to cover a pension fund, I happen to believe that it should contribute to the lessening of risk of things going awry.
My big learning's from this thread are:
1. What the customer thinks is fair and what QF think is fair can be poles apart - especially when the customer have gone out of their way (very early physical check-in) to avoid such
2. When the customer thinks "fair" QF will talk T&Cs - in this sense QF are no different to any other full service airline, despite their fare premium
3. When all else fails, in situations such as this, my QF status counts for nought - despite my loyalty (and having paid that premium to achieve it)
Mindful of the above - and interesting in the absence of an explicitly statement from Red Roo to say "sorry, this *is* extremely rare, this is how our process should work..." of course it dents your confidence. If it didn't there wouldn't be the responses above as to QFFs now altering their check-in habits...until that proves not to be the "saviour"!!
Regards,
BD