Interesting thread. I'd like to hear the other side of the story too.
I can say one thing for sure.. if Pacific BMW sees this thread, you're never going to get decent service. (rightfully so, in my mind). You are better off working something out first, then bitching if your efforts failed. It certainly sounds like all you needed to do was to talk with your SA again.
Pacific BMW has one of the busiest parts and service departments in the country, due to their large portion of internet sales. I'm on the east coast, ordered a few things from them, and know of at least a dozen local people that also order from them, and have never had anything but a pleasant experience.