Well Apple's TOC does in fact state "at their option" they will replace.... I understand your situation and your frustration. Won't ask you to go into it any further (even though you still never answered my question

) but keep in mind that it's best to take everything you read on the internet with a grain of salt. Everybody's situation is different, not everything is as cut and dry as it seems and even though it may seem like someone got a better deal or treated better, while it's possible that true, they may not tell the entire story of how their good fortune came about.
Here's an excellent example for you. My 2007 24" iMac had a few problems, actually only 2 that I was counting but there were 3 repairs. One was was the hard drive and the other was the screen. I didn't want to deal with the store anymore so I called customer relations and explained my issue. I told them I wasn't happy with this machine and I felt it was a lemon. The supervisor immediately said, "Based on your repair history being 6 repairs we would like to offer you a brand new 2009 27" replacement. I didn't know they would count replacing the mouse and keyboard as "service". They did. Done.
That machine lasted me for 2 years but this time I had 4 issues with it and the guy at customer relations tried very hard to get me to get it fixed 5 times. I agreed and they offered In-Home Service. The repair man never showed up. I called and told them to give me a new machine. Had to wait until the supervisor called me back, she did and authorized my replacement and now I'm typing this on my 2011 27" iMac which has been flawless.
So the point of my story is the first iMac had technically less repairs than the second one but Apple was very quick to offer me replacement. The second iMac had more repairs and the company was still reluctant to replace it, but they did. I would've never given them another $2000 as you did. If would've taken it much higher. Apple wants customers like you who throw in the towel. Some people win the lottery while most don't. Everybody gets their day of good fortune. You have. You can't deny that.
Keep in mind, if you have anymore problems with your iMac make sure to call Apple first and ask them if they have an authorized repair center within 50 miles of your residence. If so, they will send the guy/gal right to your house and fix it. No more lugging.