Sorry, I should have clarified in the last post. By "unrecoverable", I mean that I have already tried every wiki entry and thread suggestion to recover the device.
Note my initial post which goes through the steps I took including hard\soft resets, 10x resets, and updater version fiddling.
Basically, I'm stuck on step 6 of the "Unbricking" section of the wiki. I cannot proceed to step 7 because the updater will not enable the button to continue.
I haven't given up all hope, however. I managed to find someone with the original CD for the PRS-500. I have my fingers crossed that this CD with the original Connect software, will allow me to reflash the device. If it works, fantastic! If it does not, people need to be aware of the risk - a truly dead ereader.
I'll keep this thread updated with my progress. Thanks again for all the suggestions!