If it is a defect, based on your interpretation of the conversation, it sounds like that would be willing to adjust the price or even go good for it. But remember, they are taking your word for it. Like others stated, so many out there are trying to get something for free. They need to remain skeptical until they've personally inspected the cans. I'd send them and see what they have to say about it. Send the original rubbers too. Worst case is, you're out $15 or $20 IF they deem it your responsibility. However, should they determine that, yes, this in in fact a defect, you could end up with new-ish cans for that same $15 - $20 bucks.
I don't think you were too much out of line, but in their eyes, they were asking you to work with them and after calling and complaining, you were not willing. I think you've narrowed it to the A & B options you previously listed but didn't see the "C" option. Give it a shot and see what they report back with.
On a side note, I'd get your bike checked out because with all the symptoms you're reporting, there is something wrong with your fuel mixture and the bike is either running far too lean, or, it is running far to rich and the excess fuel ignition in the CAT is creating all the excess heat in the cans.
So glad I bought their Titanium now! Good luck!!