They were correct, and you misinterpreted what they did. They actually shot the foul shots first, then the T shots, and then got the ball at the division line. In HS rules, you enforce the penalties in the order of occurance. Since they were going to receive the ball at the end of the shots for the T, there was no reason to line up the players.
There was no double bonus; all technical fouls result in a penalty of 2 shots plus the ball. The only exception is if there are multiple technical fouls -- just the multiple sets of shots plus the ball. In other words, they don't keep getting the ball out of bounds just because there was more than one T.
I would suggest not getting into "fierce arguments" unless you are sure of your position. I can assure you that you look like an utter idiot in such situations. I had a guy who once told me (during the half of a grade school league game using HS rules) that T's only resulted in ONE free throw, rather than 2. My partner, who was a cop and had brought his "gear" in, reached in his bag and pulled out a book. He turned to the page that it discussed this and said, "dude, if you can read, it states it here." There were many people standing around and the guy walked away without saying anything.
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