A shop that really didn't do it is going to answer:
No, we wouldn't tolerate that for a second and we'd fire any instructor who yelled at a student. Period.
So you DO want the shop to fire the instructor over your version of the incident...?
I'm having a hard time figuring out what it is you actually want. Is it:
1. an explanation?
2. an apology?
3. a refund?
4. revenge?
You had an opportunity for an explanation if you'd asked the CD to set up a civilized meeting with the instructor to go over what went wrong after everybody had cooled down. You also had the opportunity to ask the CD to debrief the instructor and relay the info on his behalf. Instead, you chose to seek your debriefing from people who weren't present and who aren't in a position to confirm your belief that what you did was 100% correct. You also chose to file a QA report before attempting any sort of mediation. I'm not saying this was the wrong decision -- only you can make that call -- but it's unrealistic to expect the instructor to have anything to do with you after you file a QA report on him. Your relationship with this instructor is over.
If you were after an apology, you may have got one if you'd approached the instructor with a conciliatory note along the lines of "I'm sorry for whatever it was that upset you. I don't think I deserved that kind of reaction, but I'd like to move past it and learn from the experience." You are, after all, taking the high road. You may feel that you don't owe him any apology (nobody said you had to mean it), but if he's a decent person then he'd probably offer his own apology. Again, you blew your chances for this when you filed the QA report, so don't expect one.
You asked for a refund and they're prepared to give you one. What more do you want? It sounds like you were just trying to bait them so they'd go out of their way to keep you as a customer, and are disappointed that they didn't put up any protest. Maybe it's bad business, maybe they consider you high maintenance -- but it was you who brought it up, so you can't complain that they agreed to it. You've even told them that they've lost your trust. Get out and move on.
You keep saying the shop isn't taking this seriously enough, and even though they've actually heard both sides of the story from multiple sources, you're convinced that no matter what actions they've taken -- and again, you don't know what these are -- they're insufficient. You seem to have clear ideas of what you consider to be appropriate repercussions, even if some of them are far fetched (seriously...calling the cops?
).
Now it's PADI's turn. While there are some questionable judgment calls based on your version of events, there don't appear to be any glaring standards violations that would terminate his membership, although that's PADI's call and not mine or anyone else's on this board. PADI QA's role is to correct problems rather than dispense justice, so you may be disappointed at the end of the QA inquiry when you don't receive a certificate saying "You were 100% right and the now-former instructor was 100% wrong". At that point will the thread then become "PADI doesn't take QA complaints seriously enough so I'm switching to NAUI"?
Diving is a small world.... word will get around without me being the source of it.
You've dropped enough clues that a proficient Googler will find the shop in less than 2 minutes. Those who want to launch their own personal boycott based on incomplete information are free to do so -- it's as American as the class action lawsuit.