Thanks to everyone for sharing your 2 cents. I appreciate your input. I'm still not sure if I'm going to do anything further about it (report to DMV vs. complain to Mazda)
I understand that the damage was not their fault, but I felt they could have handled the situation much better. The things that still bother me about the situation:
1) not a single person in the dealership said anything like i'm sorry you had to deal with this mess
2) they broke the law. they put a new NY inspection sticker on a car they never inspected. in principle, this is really bad. many wires were destroyed under my car- some going to my radiator fan, transmission, etc. The tech told me I might have overheated. Perhaps someone else could be injured if this happens again in the future.
3) $100 is not enough to compensate me all the time I wasted. I lost money in the deal
4) They are selling my old, chewed car as new now on their lot! How messed up is that?
All I wanted was my new MS3 without all this headache. If they would have been nicer, more accommodating, and willing to actually make up for my lost time I'd be a little happier. I can't believe that stealership is going to sell that other car to someone else.... Whatever. I love my MS3