... my status from day-to-day (fun diver, DMT, etc) has zero do with the credibility and accuracy of my report.
I disagree. Your status as a customer will effect the perspective of your report A LOT.
From reading your initial report, it does sound sometimes like you are a disgruntled DMT, who couldn't get his head around the expectations upon you as part of a 'professional' team member.
If you were just there as a fun diver, and not involved with assistant any instructor/courses, then it sounds like you failed to shop around and find a dive center that catered for your specific preferences.
As for the comments about 'fraud'. Could it have been that the instructor was refering to a specific company policy not to allow OW divers to dive unsupervised? Any scuba company is within its rights to set any standard or principle that it wants...
For issues like liability, logistics etc, I know of many scuba companies that do not allow divers (of varying levels) to dive unsupervised.... This is world-wide, not just in Koh Tao. I've even been told that I have had to dive with a DM before (as a tech diving instructor with 3500+ dives). It caused me no offence and I never thought that it was fraud, because my certifications said I didn't 'have' to be supervised...
That said, I do concur that some of the dive schools on Koh Tao are very definitely 'sausage factories' for OW and AOW qualifications. The PADI dive centers on Tao do more certifications per annum than the rest of Thailand combined. This is due to the exceptionally economical price of courses, coupled with the location of Tao as a pre/post stop-off for backpackers visiting the Full Moon Party.
Having dived in many locations across the globe, I found that I learnt a lot during my year on Koh Tao working as an instructor. I had never been exposed to 'mass market' diving before and that experience certainly improved my logistical management of courses, time management and ability to achieve results within definite time-scales.
I know that some schools on Tao do set strict targets for their instructors, in respect of 'continuing education' of students. If one specific instructor chose to unethically persue those targets, then it should not be used as an example to judge the general diving industry on Tao or across Thailand. From a personal perspective, I do not feel that there is any harm with encouraging students to develop their scuba experience and education by continuing courses. What could ever be negative about doing more training???
If you were seeking leisurely pleasure diving, then there are literaly dozens of smaller schools that advertise a more 'made-to-measure' diving service, where they plan their schedules to avoid the crowded sites, keep small groups and, generally, offer a more relaxed experience. Of course, you pay a premium for this premium service....
To cut to the quick.... your report sounds like it could basically be condensed to...
"I paid bottom-dollar to dive with a mass-market economical diving center, and was extremely disappointed not to recieve the highest standards of service..."
Kind of like compaining that you weren't provided with silver cutlery at McDonalds....