If I have the right seller, it appears they state there could be imperfections in their description. That does not override them appearing to pick the wrong condition category though. As far as I can tell, you're absolutely right. You probably should make sure to read the sellers description though as it can help avoid a headache for both of you regardless of who is right.
As far as forcing them to send you a perfect unit, there's no way to do that. You'll have to either accept the full refund and send it back or try to negotiate a discount to the price the unit would be worth if it was listed correctly. If you feel they're being dishonest you should be able to report them to eBay. If they get enough returns or other issues, they'll lose their top rated status anyway which I think boots them out of the certified program. The problem will likely take care of itself in time one way or another.
Just as a note, eBay made changes to their certified refurbished program last fall (I think?). It's possible the seller doesn't realize they're listing them incorrectly since it appears they haven't made many recent sales. That's not an excuse for them, but maybe it helps explain things.