I'm pretty sure they knew exactly that, and that's why they have been "on my side" throughout this. I am relieved to say that the warranty denial did finally get overturned, and the car was released to me free of charge earlier today.
I am still not pleased that the thing blew up in the first place, and though it did get covered, the dealership informed me that if it happens again it WON'T be covered. So, HOORAY, I have a brand new car with a bumper-to-bumper-except-the-transmission-and-anything-else-we-don't-wanna-cover warranty. I had some strong words for them, they had some for me, but in the end I managed to get the car back peacefully enough (I did apologize for some of my outburst).
I called the woman who was 'on the case' at Subaru customer service, and informed her of how it all went down, and told her I didn't like the idea of a selective warranty and the general treatment of this case from front to back. FWIW she told me that higher-ups would be informed of this.
Tomorrow I will go back to the selling dealer and tell them of my woes. I don't know that I'll get any more than "I'm sorry to hear that" but wtv. I need to vent a bit and I want everyone to know about this.
Maybe someone will send me a fruit basket. That would be nice.
Maybe a spare tranny (just in case) would be nice too.