Obstruction still applies? or remove it? (NFHS)

[CajunNewBlue]

No one on, BR (batter runner) going to 1st on a batted ball. It is going to be a close play at the bag. There is a bad throw to the 1st baseman which goes into foul territory, where the RF is waiting to back up the throw at 1st.
Just as the BR passes 1st, the 1st baseman turns to go retrieve the ball and knocks the BR down as she is stopping in foul territory on her run through at 1st. At this point the U2 has OBS(obstruction) on the 1st baseman. The BR gets up and goes back to 1st.
The BR is now stopped at 1st. The RF throws the ball in to the 2nd baseman whom turns towards the pitcher and walks toward the circle and is going to hand the ball to the pitcher in the circle. BR steps off the bag as this process is going on. As the ball is being transferred from 2nd baseman to pitcher in the circle, the BR takes off for second base. The pitcher takes the ball and throws to the SS and receives the throw and tags the BR out by 6 feet before 2nd.
The BU called time, signaled the OBS again on the first baseman then sent the batter/runner back to first on the OBS...During the ensuing conference after an appeal by the DC,The plate umpire disagreed with the ruling by the BU, but it wasnt overturned.
Its been a full week now and its still a point of contention.

This was already posted by me on the NFHS forum. Just wanted to give the question/play its fair share. So I posted it in here. Any new (valid) debate about this would be welcomed.