The other answers point out correctly that you are not dealing with $TQBF$ but just a quantified boolean formula with just one alternation, i.e. the second level of polynomial hierarchy. That is not (known to be) complete for $PSpace$. But let's assume that you were doing it repeatedly, as many times as needed. It still won't work for the following reason:
Let's assume that $NP=coNP$, say $TAUT\in coNTime(p(n))$ (and $SAT\in NTime(p(n))$), where $n$ is the input size.
What you are doing is replacing the innermost quantifier and the quantifier-free part with the opposite quantifier and a new quantifier part. The size of the quantifier free part and the size of the bound on the inner most quantifier grows each time you perform the replacement. If the size of the formula and the bound on the innermost quantifier were $m$ they will become $p(m)$ after the replacement. If you repeat this $k$ times this will increase those values to $p^k(m)$ ($k$ composition of the polynomial $p$). Let $k$ be the number of times that you need to perform this replacement.
I will assume that $p$ grows faster than $n$, i.e. $\lim_{n \to \infty} \frac{p(n)}{n} > 1$.
If $k$ is constant the result will be a polynomial in $p$ and the resulting formula will be in $NP$, this is the case for the levels of polynomial hierarchy.
If $k$ grows with $n$, the result is no longer a polynomial in $n$ and therefore the resulting formula is not in $NP$. For $PSpace$, the $k$ is polynomial in $n$ so the proof will give a formula which is in $NExp$, not a formula in $NP$.