Hi, I completely agree.

I generally found the question rather confusing:
What are the patients rights? - that is rather clear: there is a patient code of rights; in NZ that is done by the Health and Disability Commission. In Australia, you have got the Australian Charter of Healthcare Rights.
Are there any ethical of professional issues? - I presume, you are talking about a patient's difficult behaviour and refusal of treatment as well as staff's refusal to provide cares. Both are in their full rights here (check the Codes of Ethics for Nurses and Physios - both exist for Australia).
Have I ever experienced a similar situation? - well, my answer would be: about once a month.
Course of action: Could vote for "Raise issue with nurse unit manager", but that is not the course of action to deal with the problem, just the first step. So I won't put my vote in. You have also let out the option to contact your Line Manager or Supervisor to discuss the problem and course of action.

My course of action would be to set up a team meeting including the patient and his advocates. But then again, I am in a position to do so and have a professional role with an obligation to manage situations like that. Other Physios will not necessarily have that.

Cheers, Fyzzio