
Personally, I would try to appeal, again sending a letter from the vet who initially saw the dog and the vet which did the op' (if it was another vet' surgeon), and/or any other vets involved, stressing it was done during accidental play, with words to that effect from the vet(s) concerned, with the magic words (or so I've been told)
"the operation was carried out for the health and well-being of the dog concerned and NOT for cosmetic reasons" At the end of the day, what do you have to lose? I think it is also a good idea to get your friend to write a letter aswell, another testamony won't hurt. But I would also keep records/copies of what was sent......just in case
However, I find it strange that they say it would put your pup at an advantage, when other procedures get approval (i.e cruciates), is there anyone you can speak to at the KC who can throw more light on the decision?