Issues with HTC One, ATT won't replace it. Options?

I bought an HTC One on Jun 26. The power button was weirdly flushed with the body. When I pointed it to a store rep he said "oh this is the design". I went along with my life, until I saw a friends HTC One, whose power button was not completely flush with the top of the phone.

I went back to the store and asked for a replacement. The store rep told me that since 14 days had passed he couldn't but I can go to the ATT device support center across town for a replacement. I had a busy couple of months at work so I waited for a while, besides the power button wasn't bothering me that much.

Meanwhile I noticed that the camera had a weird red tint in low light situations that would progressively get worse. I googled it and tons of people are having that issue. So I made an appointment at the device support center. When I got there they told me that they had never heard of the issue. They compared a in store demo unit that also had the same issue. I requested to speak to the manager who told me the same thing but was willing to speak to HTC tech support. He dialed the number and handed me the phone. I spoke to HTC tech support who confirmed the issue and told me ATT should replace the phone for me. I turn around but can't find the manager anywhere. I ask around and turns out that the manager has left for lunch. I convince another rep to speak to the HTC tech support rep I have on the phone.

The ATT rep speaks to the HTC rep but still pushes me to keep the phone I have. At this point I'm annoyed and I request her to please replace my phone so I can be on my way. She looks at my phone and says since I rooted she can't replace it. I point out that her demo unit also has the same defect that HTC told her is a real issue.

The manager comes into the store but refuses to speak to me. I am offered to buy a replacement phone for $175. I suggest that they sell me the replacement phone, keep both and release me from my contract. Rejected. I am told to call the account retention department.

I call the account retention department where I explain the whole thing. I'm put on hold and told this

"I spoke to my manager and he has refused to replace your device or accept the return and release you from the contract". I ask to speak to the manager. I'm put on hold for an an hour and twenty minutes before they hang up on me.

[EDIT]

TL;DR Was sold a broken phone that I rooted. Spoke to HTC who acknowledged it as a manufacturing defect. ATT still refuses to replace my phone because of root which has nothing to do with the manufacturing issue.

What are my options?