You mean that if you start with all your ratings, they count for more than Gen Electives, but if you get them while attending, thats all they are? That doesn't make much sense (typical Riddle though).
Looking at my sheet, I had all my ratings when I started the DL program- I got credit for all the Aviation Area of Concentration requirements, plus Phys 201 (Physics Elective), for a total of 36 credits.
Anyways...sorry to hear they screwed you. Join the club!