Wow. Bstevens, I admire your spunk, but your information about the publishing industry is way off base.
I agree that many more authors are taking a hand in their promotion these days. Some spend part or all of their advance, with the thought that it's the publisher's money anyway.(ETA: I don't particularly believe that, but I can understand the thinking). But what I don't agree with is what you believe about publishing on other points.
Big publishers take on new authors every day. Same with agents. Take a gander at Publisher's Lunch someday for the latest on the book deals. Many, in fact probably most of them are new or new-er authors.
These big publishers put money into every single book they produce, in the forms of catalogs, advertising campaigns (yes, they do! I can prove it to you), and a sales force. They market to libraries. They have reviews in trade mags and markets. Money that you don't know about. They have whole teams of people who carefully consider things like cover art, title, marketing plans. PA, for all the authors they claim, have none of this.
Editing - three whole edits with PA? Were they only for grammar and spelling? Don't fall for PA's line that 'we don't touch your prose', 'cause that is crap. Every single author needs the benefit of a good content edit. Make sure things are cohesive, characters are well formed, plot lines make sense, and the book will be the best book it can be. My small press editor spent weeks with just me going over stuff. I didn't have to make any changes I didn't agree with, but many of them I did. It's not about 'writing characters you can touch with your minds eye', it's about having a book that shines as a whole. Everybody needs this.
Big deal, I'm a college graduate too. Even the most published author among us needs editing, critiquing, polishing. Every. single. one.
You should spend some time here and find out where people here have been published. We have authors who have books out by St. Martins Press, Tor, Daw, Harlequin, Kensington (and I remember the day Jackie got her deal, she was SO excited, a new author and her first book), and others that I can't recall off the top of my head, plus a number of smaller, legitimate presses. People who know what real publishing is like. Editors from publishing houses whose books you can find in a bookstore, and other various publishing professionals. They know how it really works.
- PA just about accepts everything that comes in the door, which is why they have volume. It's called slush in the publishing world. There are statistically bound to be some great books, some good books, but mostly badly written, in need of serious work or not publishable at all books. Because this is what comes in to EVERY publisher and agent. But every publisher and agent doesn't accept them.
We have proof positive that PA does this.
Didn't pay one red cent, huh? How many books are you planning to buy? How much are you planning to spend promoting yourself? Welcome to reverse vanity! Nobody published by a real publisher pays, dear. Only vanity and self-published authors pay.
Not waiting for money to fall into your lap? You wrote the book, you did the hard work.
PA has a terrible reputation, and you're going to have to overcome for them when selling your book.
In other words, don't believe the manure PA spreads and the hype on the message boards. I haven't even mentioned the nasty letters PA sends out if you question their methods, and the obvious mismanagement of their books, shorting authors royalties and continuing to sell books they no longer have the rights to. It's all here in these threads though.
It's a scam not because of money changing hands, but because of the misleading advertising and rigamarole they push down their authors throats.
PS - I pay $17 a year for my website, for the domain name only, but I am my own webmaster. It's a good way to go, and right now if you Google my name I'm in the top five results. I send a quarterly newsletter myself for free. There are cheaper ways of doing the promotion.
PPS - just so I identify myself, I had my first book published in Dec. 2005 by a small but honest publisher. The next comes out mid-2007. I do promote myself, the publicist for my publisher lines up my appearances for me, though, and I don't travel far. I also do school visits, since I'm a children's writer. I also write English Adaptations of Japanese Light Novels for the largest Manga publisher in the US. (which means my name is in the book, under 'English Adaptation by:" when you pick up the book at the local bookstore, and they will be in nationwide bookstores, starting this spring.)
If I were you, I'd start shopping them around. It's a fact of life that every writer gets rejected. You just have to keep sending out queries and never give up. With the strong determination that you possess, I feel that you'll make it in this business. And with that, I wish you the best! 
(just kidding)