Do you think I got screwed, or is it just part of the hobby?

Yes, I have called them to let them know the results of the leakdown test, and told them that I didn't want to take the heads off until I talked to them, in which they agreed to take the heads off and then we'd go from there. Now, if it does turn out to be their faults, which I really can't see any way it's not at this point, especially when I notified them from the beginning the "warrantied" engine was using a lot of oil and they said drive it and it should seal up by 1500 miles or so, and they fix the shortblock with no cost to me, then great. I'll let them, everyone makes mistakes. However, if they don't make it right, then of course I'm not going to let them fix it at a cost to me when they messed it up the first time.