NFR, I understand you going above and beyond the call of duty, and I have been in the same situation back in the days when I worked the E corridor to Mildura (which turned out to be the tip of the iceberg, and that was scary enough). I had reservations though as I'm sure you had at stepping in and stopping an aircrafts descent (hopefully) above an unverified, no details 1200 paint. What if the Mode C is wrong, what if the VFR climbs, and in the resulting inquiry after they hit, experts say that if left to their own devices the two aircraft would have in fact missed but by levelling your IFR off you made the situation worse.
As I said I understand completely the predicament you were in, but it seems you can't win either way. You either play it by the book and watch the paints merge, and get branded a "criminal" or you step in, step over the line, and try and separate with only half the story, and risk your livelihood, not to mention the lives of the passengers. Its a tough one and one that Dick Smith has never had to be in a position to consider.
Thats the thing that gets me, he sits in his nice house, with his fat bank account, and tells us, pilots and controllers, how we should be doing our job, when he has no understanding of the pressures we all face on a daily basis. I feel so sorry for the poor guy who first has to go through the hell of seeing traffic almost collide, and then being branded publicly a criminal. Its an absolute disgrace and I hope Civil Air or AirServices or both pursue the loud mouth legally and make him pay for his defamation of this unfortunate individual.