I believe this is more a reversion back to what was an older standard of class distinction within the Apple Store. I believe putting emphasis back to the customer with respect is more likely the newer paradigm. That being said, my experience in our Apple Stores has improved over the years, but the so called genius bars are hit or miss. I actually had someone help me, while they were tasked with a personal lesson. They made sure I was taken care of, which was nice. On the other hand, there are so many that will not even acknowledge your existence if you are not wearing the Apple logo on your shirt.
I am concerned to hear that the manager of the store was not aware of the problem though. I don't want to jump to any conclusions, but it sounds more like the store manager came from the HR vice the technical side. I believe Apple OnceCare as a paid service should go away. Or at least have a better triage method. You would think the company that could bring us SIRI would have a better method in place. They should take and listen to every call from a customer, then give you the options. One thing I would like to see in all help calls too is a conference call function, vice hold and wait. I would like my help desk to openly acknowledge if they are unaware of an issue, but include me on their effort to learn and resolve an issue.
The saving grace for Apple has been communities like this. When I encountered this update problem, I was about to panic. I went through the Apple troubleshooting books, and nothing. But a search of the Apple community forums and my recovery was easy, and free. I do hope that they will find a way to have more Apple presence in these community forums, and maybe even have a method to have questions not only direct by subject, but have them highlighted to your local Apple Store genius. It might be a lot to ask for, but than again it's Apple. I think Steve Jobs would support it.