Glad to hear you stuck to your guns on this, what an idiotic response by dealer. Bumper to bumper, extended coverage means just that, with the exception of normal wear items (e.g. brake pads) and perhaps physical adjustments. The latter are usually only covered for a short time with the normal factory warranty.
I think I would try out another dealer in the future.
p.s. Did they replace latch, solenoid and/or install spring add-on?
98 Mystique LS v6 atx 110,000km
97 Contour LX v6 atx 125,000km
stock CD on LS, cass on LX
spoiler, tinted windows on LS only
4 wheel discs on LX only
All other available options on both
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