Here's my update...
I called the store after about 4 days and got kind of a snotty tone about how they'd call ME when they were done. I called again a couple days later and they said they were almost done and were running the post fix diagnostics.
Today was the 9th day so I called again despite having been treated kind of poorly on the phone last time. The guy says he'll leave a note for the Genius Admin since he was at lunch. Right before he hangs up he says let me go check if its in the "ready to be picked up cage". He comes back and said it was.
I had mixed feelings because I was glad it was done but a bit miffed after being told not to call that they didn't actually call when it was done.
I went to the store after work to pick it up. The guy brings it out and I ask to boot it up and make sure there's nothing on/behind the screen. He gives me dagger eyes and says they check for that but goes and gets a power cable.
I get it home and when I set it on my desk I notice two things. I never would have seen anything in the store because all the dust and lint is more clear when the screen is off... and I HAD dust and lint. A LOT. The second thing I notice is they obviously had to PRY the glass off and left an (admittedly tiny) chip in the aluminum frame and scratch on the side edge of the glass. I was PISSED. The damage wasn't terrible but the dust was really quite bad. I gut a sick feeling in my gut. This was going to be a battle.
So I call the store and tell them what's going on. They offer to clean it and replace the aluminum frame. I argue forcefully but politely that looking at what they've done, I don't really have much confidence that they can fix it. I ask if the person I'm talking to has the authority to replace the machine. He says no and I get escalated.
I explain the situation again and get the same attitude. It can be cleaned, they have a "special tool" from Apple. I ask why they didn't use that tool during the original repair? He basically says they can't really control that, sometimes there is dust in the room. I say so how can you be telling me you can for sure fix it? Either you didn't use this "special tool" the first time or you DID and there is nothing you can really do. I also tell him if they're going to make me bring it in any way, I want the aluminum chip fixed. He says that's fine they can order a new frame.
Then I drop the bomb... I continue to argue that I don't really think this is something they can fix but if this is the level of service I can expect, I'll bring it in and give them one more shot but I'm also bringing in the 13" MBA I bought Thursday and returning it as this is not the level of service I signed up for. He kind of ignores that comment and I ask him how long the repair will take since they already had my computer for 9 days and THEY did this and I can't be without my computer.
He said once I bring it in it will take 30 minutes to clean inside the screen. I asked how long to replace the aluminum frame (at this point I'm realizing this isn't a frame, this is a unibody, they're going to have to move the ENTIRE GUTS of my iMac to a new unibody since they chipped this one. He puts me on hold to check on parts. He comes back and as if we were not just arguing and I was completely pissed and says it will take more than a week to fix and he understands that's too long and they'll replace it. Again, mixed feelings because I think that's the right thing to do but I had to THROW A FIT to get to that point.
So I box it up and lug it back to the Apple store. I get there and go back the Genius Bar and tell the check-in guy I have a return... its a repair I picked up today that I'm not happy with and the manager agreed to exchange it out. He logs me in and moves me the corner. I wait for about 2 minutes and a sales floor guy comes over and asks how he can help. I explain the SHORT version and that the manager said I can exchange it. OH, I forgot on the drive there I realize I didn't get the managers name and there's a possibility I could get there and they could deny knowing what I'm talking about which would pretty much result in me going ******* in the store... So he whips out his little point of sale handheld thingy and starts processing the return. He asks if I just want the same thing. I say yes. He says he needs a manager approval walks over to a lady in her late 30s. She's helping another customer so after a brief exchange which I couldn't hear, she enters her code into the point of sale device. He walks back over and says someone will be bringing my new machine out.
At this point I feel a total disconnect. I've been treated like crap and had to argue my way into a return I feel totally entitled to and this sales guy is being nice and acting like its no big deal. While we're waiting for a stock runner to bring out the new iMac, this lady who approved the return walks over. She asks if there's anything I need. I giver her the short short version and then focus more on how I've been treated and how I think that even though they agreed to the right resolution, I felt like I had to throw a fit and that's not the level of service I expect from Apple. She apologizes profusely, points out that she hadn't talked to me and that the genius manager let her know I was coming in but that she had no idea I was upset and unhappy about the repair and service. Turns out she's the store manager. She apologizes again and gives me her card. I reiterate that I appreciate that they arrived at the right resolution told her, thank you for coming to check on me and letting me explain my concerns. She thanked me again and I left with the new machine.
So in the end, Apple's reputation is a bit tarnished in my mind at this point but the store manager made a huge move towards polishing it back up. Hopefully my luck changes.
A couple side notes. I think there are three possible factors contributing to the final resolution.
1) I've bought FOUR Macs (27" highest non-BTO, Mac Mini, 15" base MBP, and 13" base MBA) just since February. Prior to that I've bought 2 iPads, 2 Apple TVs, 2 iPhones in the last year and a few iPods before that. I think at some point someone probably finally saw my purchase history and went... oh, maybe we should help this guy.
2) I think when the guy on the phone went to check the parts system he finally realized that it was going to be a major mess trying to replace the case because it would involve basically an entire transplant.
3) The iMac I returned will have to go back to Apple to be refurbished. That's probably a pain in the butt for the retail store. But when I finally said I'd return the MBA if I didn't get a better resolution, they probably realized they were in a no-win situation, they'd have to refurb the MBA if not the iMac so it made no difference at that point.
Sorry for the long post, one final closing note. My bad experience with dust and scratched case is just one of a few I've seen posted. I would question whether its worth even having the repair done frankly. I mean if this were a failure where the part has to be replaced or the machine doesn't work, fine, but a preemptive part swap??? knowing what I know now, I probably would take my chances and do good backups rather than let someone open my iMac.