Yes its off alright
Yes the LH pedal is off BUT, when the alloy insert started to turn that was when I stopped because,
A) The force required to undo the pedal axle was less than that required to turn the insert.
B) Had I not stopped at this point the bike shop would have not had to experienced the problem and would probably would not have believed me.
I took the bike back to where it was purchased 6 months ago. They allegedly removed the pedal "Real easy" (as they would). The crank has now been sent to Italy to be checked. Is there no one in Australia suitably qualified to make such decisions?
Since the square taper cranks are no longer made, if it is a warranty claim maybe a new model hollowtech crankset may be supplied in its place? It can't hurt to look on the bright side.
Cheers