Huskypup - I have had quite a few exchanges with DD about the problem. They've stood by their requirement until today. See below.
Webwork - I wasn't looking forward to any legal battles. Probably wouldn't be worth it since I have control over the domain name now (except for that pesky "legal owner" fake field).
Robho - I do have the ability to edit the Admin field. Is the Admin field always the owner? I keep seeing "registrant" being used as the "legal owner" across the Web. On DD, there's Admin, Billing, Org, and Technical contacts. Then that money grab one called "Legal Owner."
This morning I got an email from DD saying they had authorization to make the legal owner change for me. I think maybe my problem got to the right person. Maybe they read this thread?
The change hasn't been made yet, so we'll see. I'll keep you posted.
I'm curious. Does Domain Discover have a bad reputation I'm not aware of? This is the first issue I've had with them. Is there a good, unbiased review site for registrars? All the reviews I've seen seem to be owned by a registrar.
Thanks to all who replied.