I trust you have been documenting all conversations (names dates times places) with every person involved in this fiasco. If not, reconstruct as best as possible and start detailed documentation immediately. I try to limit my communication with the enemy

via email for obvious reasons. They prefer the phone or face to face for obvious reasons. I tape record all meetings. That tends to reduce the bull $hit level a bit.
Your surgeon is not completely innocent in this matter. If he was not aware of a recall on devices he installs, he is not doing his homework. I am betting he was aware but failed to double check the model number on the device before installing it. Either way, that's a big no no.
Did ins. cover this or any part? If so, they need to know that they were sold a recalled device. I understand their position that replacing it is not their problem if you are not in crisis. I don't like it but I understand it.
It sure seems to me that since you had one inplanted AFTER the recall date, you are justified in demanding a replacement at no personal expense. Are we talking about SynchromedII model 8637-20 or 863740?