This story is interesting but we need to take into account that this issue happened 50+ years ago when automotive manufacturer's warranties were not handled and recorded by our government and others like they are today. GM had produced over 100 MILLION of their legendary and reliable small block V8's and it has been used in millions of passenger cars and trucks from 1955 to 2004. The production range speaks for itself. Those very same engines are still sought-after today for hot rods and race cars. Your issue was a rare one and certainly wasn't common. GM has replaced their fair share of engines under warranty as has every other manufacturer. You, unfortunately, were dealing with 1 or 2 shady lazy dealerships who obviously didn't know what they were doing to start and secondly you bought a sports car that GM new was going to be thrashed on and raced before the engine was broken in so already you had a challenge ahead of you. All that said, your one issue doesn't make all Chevrolet's engines or vehicles a POS. We can get into Honda's issues if you like. I got one sitting in my driveway (not mine) that has had many issues (some still linger) since it was new. The dealership and Honda USA have been a nightmare to deal with. Does that make all Honda's a POS?My first new car was a Corvette with a 327-240hp engine. It consumed oil at the rate of 1 qt. for every fill of gas from the day it was new. It fouled the plugs in less than a week. Many trips to two different dealers got all sorts of superficial things done, to no avail. Finally after being told I couldn't see inside the engine while they had the heads off, I went around back. Talked to the mechanic and he showed me what the problem was. Shinny hard somethings imbedded in the cast iron cylinders. Each one formed a bump that caused the rings to gap and leak oil. I finally got a face to face meeting with a factory rep. He told me that GM would never replace a block, no matter what. POS!
Lastly, not sure how much knowledge you have with engines but it sounds like the engine could have been repaired without replacement but without more info its hard to say but I am certainly not saying it was right for whoever you spoke to to deny you a warranty. I think if you got with the right dealership to represent you, you could have got it replaced. My father was working for GM as a tech when you bought yours new and he has many stories about Vette owners and what they did with their cars to give them the bad reputation that still haunts them today.