I'd like to believe that everyone is telling the truth but it doesn't look like the cable was on fire but it definitely looks as though it got too hot.
You once talked about how good the AppleCare staff was. You should call them and work with them to replace the power supply cable.
You said there were burn marks on the MagSafe port of your MacBook as well. But in that (also blurry) pic, the burn marks look isolated to the fray in the wires. Can you take a picture of the MagSafe port on your MacBook by any chance?
That was pretty anticlimactic IMHO. You've lost even more respect by trying to resurrect this topic. Wouldn't you want people to forget this fiasco in the future?