tl;dr: The rule as written in Wikipedia is perhaps slightly misleading and maybe even incomplete.
The product rule, as stated in Wikipedia says that if there are $a$ ways of doing something and $b$ ways of doing another thing, then the total number of ways of doing both things is $ab$.
So you're assuming for your case, $a=4$ and $b=3$.
But that isn't quite true! For starters, the number of ways to pick the second thing is conditional on the number of ways to do the first thing. Wikipedia never formally defines this rule, but this is mentioned specifically in the following lecture notes: the product rule only holds for independent events.
So what happens when you don't have independent events? You discard invalid instances. Why does it remove so many cases? Because your conditional is a lot more complicated than it seems. When doing a count, you actually need to account for valid cases which have already been counted.
Think of the whole counting exercise as a series of you picking two different balls with the goal of finding distinct pairs, each conditioned on what you have already picked. For example, one step may look like:
How many ways can I pick my second ball, conditioned on the fact that my first ball was $B_2$, and that I already saw the pair $(B_1,B_2)$?
Your conditional here is not just the first ball you picked, but also what pairs you have seen before. So, the number of choices you have is effectively less.
Edit: As Arturo pointed out in a comment, the product rule tells you how many ways there are to draw a first ball followed by a second ball, agnostic of whatever choices you may have made in previous draws. That is not the experiment you want. For a draw to be valid, you must draw a fresh pair, irrespective of order. Consider the following: you do the following draws:
$$(1,2),(1,3),(4,1).$$
Now you want to do your fourth draw. Technically, you've drawn $1$ on the first draw only twice. So you should have one more turn, right? But actually you don't, because the irrelevance of order means that $(4,1)$ took care of that. How do you get $4\times 3$? For every one of the four balls, you should get three tries. But here you don't. Because You don't just care about how many ways to draw a first ball and a second ball, you care about the pair itself. The answer to the former is what the product rule gives you.