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Runner is heading to 3rd but runs into 2nd baseman standing on 2nd. They do their dance and runner decides to stay at 2nd. Was past 2nd about 3 feet after the dance. Ball comes back to infield with no plays anywhere, just back to pitcher since no one was running.

The ruling was there was obstruction but it was of no consequence because runner chose to go back to 2nd. That was the explanation.

I'm think'n the explanation should have been obstruction, the runner is placed where the umpire deems he should be placed had there been no obstruction.

No this doesn't foresee the "3rd demension" in that if the runner hadn't been obstructed there "may" have been a play at 3rd since he may have continued to 3rd. Does any of this play into where the runner is placed?

Or of course, since the runner didn't try for 3rd, he gets 2nd and no awards.