As the feed has been removed the Store has no connection whatever with it: nothing you do with the feed will ever be picked up. If you don't re-submit your podcast and get it accepted nothing will happen.
The submission problem is a bug in the process: if a podcast with the same name as one which was previously submitted and later removed is submitted you will get this error message, and the only workaround is to change the title.
Once a podcast has been accepted and has appeared in the Store you can add further episodes: you don't have to submit again.
When you add a new episode to your feed and upload it, it appears immediately for subscribers because their iTunes application reads the feed directly and the Store is not involved.
However because of the huge number of podcasts in the Store (thousands) the Store caches the feed and checks it for updates periodically. For this reason it usually takes 1-2 days for new episodes to appear in the Store: sometimes it can be less, and occasionally the whole process seems to get stuck and it can take several days.
You should check your feed by subscribing, either from the Store page or manually from the 'Advanced' menu in iTunes, to see that your new episodes are there. If not, then you have an error of some sort (such as a duplicated 'guid' tag). If all your episodes appear when subscribing then the Store should catch up after a bit.