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As an impartial customer myself, I can't really see anything inaccurate or incorrect with the response which you received from Telstra. It's a very thorough explanation regarding the limitations of wireless telephony. Although this may do very little to immediately rectify your current service problem, the feedback that you provided will go towards ensuring improvements in problematic locations.
HOWEVER, your issue is capacity, and it appears poor ol' Raffy focused on coverage. Probably because they don't have a script on capacity to copy from. LOL!
It's all good though, because the engineers (don't know why Raffy capitalised "mobile technicians" and "engineers" - job titles aren't proper nouns) would know exactly what it's related to so I wouldn't worry too much about what template Raffy was reading from.