I am happy to report that I received a full refund cheque in the mail today! While not the quickest response that I envisioned, I must give credit that Etihad came through for us in the end. Thank you to Guest Services who assisted us and I will be happy to book with the airline in the future. I wish all the ppl in this thread a quick and speedy resolution to their dilemmas as well.
Happy endings do happen!!!