Sorry to read about the problems you are having. I agree with all that you said!
In reference to the naysayers at the beginning of your post that want to give you grief about the purchase, ignore them. As a newer-ish member here I've learn just to tune them out!!! They are probably the same ones that give the newbies and anyone else the, "LOOK IN THE TM'S!!!" instead of trying to help them first and then directing them to the TM's AND also trying to help them through those
PITA TM's. I never understand why someone who doesn't like what someone else has written doesn't just bypass the post...just like if you don't like what's on a TV channel, TURN IT! Well, now down off my soapbox
Don't get me wrong, most all of the SS members here are great and full of knowledge and will gladly help you out, but it seems a few are just grumpy.
In reference to them altering your title and giving it back to you in that condition, I can say with out a doubt I would take them to court!!! No if's, ands or butts about it. They would be costing me money and I believe I could make the case. They altered your property without cause. I would want them, at the very least, to make them get a duplicate copy from the state the title is in so you can sell it to someone out of state, or give you a Florida title. Like you said, you can't sell it for what is worth with an altered title, it's costing you money!