yup, totally agree with joebloggs observation.
you upset them by not honouring your original commitment to return to phils when your visit visa expired, that is why your settlement visa was refused.
They think you tricked them with the visit visa when all along your intention was not to return back.
That is why before they give any new applicants visit visa they want to see cast iron strong evidence that they will return back to phils before visit visa expired.
So many people are using this method of visit visa first as springboard to come here and then pursue a settlement VISA here. They are trying to clamp down on this practice.
now I think you have 2 options
1) voluntarily go back and pursue settlement visa from phils (you have good chance of success since you have child with your partner and they won't think you're fake couple)
2) stay in UK and keep fighting and make many appeals eventually they will give in and give you if you're lucky (I know few people appeal like this and they evntually got what they want and immigration back down)
The only fallout from this is, it will make immigration make even tougher conditions on propective people making application for visit VISA in the future
