Verdict is in!
I got the call today from Honda Corporate.
They have offered to furnish the transmission (new not rebuilt) as well as a 3 yr/36K warranty on the new tranny. I have to pay $700 labor for the installation.
It's not great, but definitely better than the $4k the dealership wanted.....which by the way I had no intention of doing.
Bottom Line.....Honda stood by their product (somewhat) and although I'm not overjoyed, the stress level is definitely lower!
Now, next question.......since they have to tear this whole thing apart anyway, is there anything else I should purchase and have them install that usually goes shortly after 65K miles?