To be honest, you should have done your research on the game. Months before release, it was heavily advertised that 1.0 players would be able to carry over their characters AND they would even get discounted subscription fees if they had remained subscribed for a certain period of time. The term Legacy Player should have at least crossed your eyes while looking through the Square Enix site. I was actually surprised when i read that SE offered to transfer your CE items since they're not really responsible for you having to buy the same game twice. It was a situation you could have avoided if you did more research.

Then again, they did lead you on with the promise that they were going to fix your problem and then weeks later change their mind so yeah, that was wrong of them. It could be either the original CSR was just lazy and made a false promise to make you go away or that second CSR was just being a B*tch.