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Haven't read the whole thread but here's my take on the situation.
If you put your foot down and tell them that you want it released as is, you run the risk of them releasing it, but not promoting it like they should. They might just not release it at all. I'm betting that you didn't get paid an advance in your contract, or even get an assurance in the contract that the track would be made available, which means it could just be thrown in the bin completely. After all, they didn't pay an advance, they have no incentive to release it, they haven't spent any money on it.
If you try to send the track to another label, chances are the label you've already signed with will try to block the release on the basis that they have distribution rights.
If you choose to bow to their pressure and change the track, you might get the release, but it sounds like the people you're dealing with are incredibly unprofessional, and you probably don't want people like that representing you on your first release IMO, because they'll fuck it up some way or other. And you run the risk of them being as incompetant at promoting a track as they are at signing one.
So your stuffed every which way.
If I were you, I'd try to either get them to tear up the contract completely, so that you're free to sign to another label. They aren't obligated to, but they might just do it if you phrase the request in the right way. I'd suggest to them politely that they scrap the release completely and you might come back to it in a year or so and send it to them again. And tell them that you'll give them another track to release at a later date.
If they won't come to the party, I'd go along with what they say, because you have no choice. And then I'd tell all my friends what ****s they are.
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