That really sucks. I have never had a single controller for more than 6 Months. I would go back onto the Xbox support chat and be Hostile with them.
note to them that they advertised the controller as a top quality product and initially advertised it to have a 12 month warranty and then question why it is now only 1 month?
hopefully you will get a customer support personnel that actually gives a damn. you are right about the product needing a recall..
I have already got info from an EB Games manager here in Canada that was told the Elite Controllers where being Discontinued. He did not state if it was being discontinued on a Xbox level or a EB Games level but noted they would be having a hard time honoring their own warranties on the device due to the Elite controller being Discontinued. I have seen it on the shelf at the Microsoft store and asked about a protection plan and the sales guy was clueless.
Due to it being 13 Months old I don't know what you can do other than try again and bring up their false advertisement of the controller at day one launch that quickly got swept under the rug...