Swollen Battery, Genius Bar NO help!!!

I have a mid 2007 black macbook for which I am the only owner.  Over the past few months I have noticed that the battery is swelling up to the point that the macbook will not sit level on a desk.  I have read quite a few posts of people who successfully got their batteries replaced even after warranty just by taking it into the Apple store.  I decided to give it a try with no success.  The Apple Care rep at the Newmarket, Ontario, Canada store gave me some bull crap story that the batteries are designed to expand.  This is true for the design of the indivitual battery cells but should never happen with the whole laptop battery.  The only option he gave me was to purchase a new one for $129.  My battery still has awesome life to it, charging with no problems and lasts for hours.
Some have told me that the expansion is a safety issue, true or not it is definately a design flaw and should be replaced by Apple, regardless of the warranty, since this was a widely reported flaw.  Going to the store was my only option since any other contact with Apple will require purchasing a service plan.
Any suggestions, from y'all?

At first I just noticed that the edges of the battery were not flush with the case but didn't think much of it until a week or so ago when I noticed that the laptop was not sitting level on the desk.  I have never had a swollen Lion battery in any laptop or any device.  After doing some searches I found that this was a somewhat common issue with the Macbooks of that era.  I was surprised that there was no official recall and that a replacement program was only put in for 1 year.  Apple made no effort to contact consumers who had the products, for which they have all the information since most Apple products are registered, including mine.  I read some posts that had success getting Apple to replace the battery as late as March 2011, but I had no luck.
I have 240 cycles on this battery, but it is still in perfect working order.  It holds a charge and runs for hours with no issue.  I have no problem replacing a battery when it no longer holds a charge but expansion of the battery is NOT a sign of wear but a sign of a defect in the manufacturing process.  I am dissapointed that Apple did not take this issue seriously and issue a recall, and since my battery expanded after their replacement program I am out of luck.
I can tell you that I will not be dishing out $130 to Apple for a new battery, since there is a possibility of it happening again.  I would sooner buy 3 aftermarket batteries for the same price.
I am an avid Apple fan but not even I can defend this to PC users.  Much like the iPhone 4 antenna issue, Apple just puts a bandaid on it and sweeps it under the carpet.

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