Not finished reading your thread, but have to go now, so here's a bit about the Corolla.
Aaahhh, brings back memories. Your 2002 was better than my 2001, but you're right, the 2003+ models are a significant jump ahead. I test drove the current model twice and liked it lots.
If I were you, I'd think the deal I got was great!
I can't believe with the multiple cosmetic damages (albeit small), a 2002 Corolla can still fetch $8000 wholesale. I mean, the car wasn't that much to begin with....