why is customer support so bad?

I used to be a firm believer in Apple, mainly their customer support. This all changed recently, and I am really starting to get angered with Apple. First, this past July, I needed a computer for my office, as I recently got promoted at work, and was instructed to get a new computer of my choosing. Being that I had bought an iMac in 2010 and was very pleased with it, I opted to go to the Apple Store (online) and buy a refurbished iMac for $1700. Being that I spent so much money on it, I expected it to work just as well as my old, trusty, 2010 iMac...boy was I wrong. When I took off all the packaging, I hooked the computer up to find a monitor that would not go out of a very big resolution (don't know the numbers exactly, but it was like 800x600). Also, there were screen tears and I got a 30-second fuzz screen when I first turned the thing on. Making nothing of it, I figured a quick call to Apple support would solve the problem. Their solution? I'm going to put it in bold because of how ridiculous it was (I am not making this up):

SPEND ANOTHER $1700 ON THE SAME COMPUTER AND WAIT FOR IT TO BE SHIPPED. THEN I COULD SEND MY OLD ONE BACK AND THEY WOULD REFUND THE MONEY FOR THE FIRST ONE UPON RECIEVING IT.

That's right. Apple wanted me to invest a total of $3400 dollars into two computers when one didn't even f****** work. They told me that this was my ONLY option because it was refurbished. I couldn't take it to an Apple store where they would attempt to repair it, they couldn't send me another iMac (they told me that they DID have the same model in stock, refurbished) and have me send mine back, and I couldn't send it back to them for repairs. My ONLY option was to spend another $1700 on a piece of crap that may or may not work and kind of hope that it does! Thanks for that, Apple.

This was the first straw. Now, for my second problem. I have an iPhone 5, with AppleCare, and the screen recently broke. So, I called and we got it taken care of, but part of the deal is that you have to put up the $799 for the new phone until your old phone gets back to them. I didn't have a problem with this until yesterday. First off, my new phone got here on Friday, mid afternoon, and I was out of town so my parents signed for me. Then, I get an e-mail yesterday, THREATENING TO CHARGE ME WITH THE $799 FOR THE OLD PHONE IF I DIDN'T HAVE IT BACK IN THEIR HANDS IN FOUR DAYS. First of all, the original E-mail I got said that I had until the 21st to get it to them. Today is the 12th. On top of that, Apple threatened me and told me I had four days to return the phone when one of those days WAS A SUNDAY. WHAT MAIL SERVICE DELIVERS ON SUNDAY?

Apple, I am highly dissappointed in your customer service and your terms. I used to be a huge fan and rave to everyone around me about how you were the best, especially when it came to customer service. Now, with the cons and the threats, I am beginning to seriously dislike you. And, another question...my phone is nowhere near in working condition - with all of this talk of the NSA and Apple being related, WHY IS IT SO IMPERATIVE THAT YOU HAVE MY OLD DEVICE BACK? Don't ever threaten me again, Apple. The worst part is, amidst all of this shoddy customer support, I wasn't offered anything as simple as an apology. Sorry for the anger Apple, but I am very dissappointed in you.