I know the Nifty boys, more Nate than Daniel, just in the interest of disclosure. I'm not defending anything, clearly they screwed up badly on this one.
My suggestion, whatever it's worth, is that if they're taking the step of giving you the machine for free, obviously as payment towards trying to salvage the hit to their reputation, and you're accepting it, that it might be nice to edit the title of this thread and the opening post with things being resolved in return.
The record of what happened will remain, but very few people are really going to read 23 pages of crazy town to see the resolution.
Up to you, just what I would do after they made a pretty legit gesture of trying to make things right.