So, this morning I'm thinking: if security is an issue, then I really should bite the bullet and get a new hard drive from the MacAuthority. Then I have a new hard drive, AND I can keep my old one.
But wait: I just called Apple and asked: "what happens to my extended warranty if I replace the hard drive with a drive from a third party?" Answer: the warrant is voided.
So, unless I'm willing to let Apple walk away with hard drive and all its data (even if it's unreadable), the net cost of this fiasco is: $250 down the tubes for a voided warranty + $150 out of pocket for a new hard drive = $400.
So let me see if I can call the store and talk to a reasonable person....