How many times can I vote to get this article up to a 10? This is a story every business owner considering a new website or a redesign should read.
As an SEO person I do have a few comments about #2 in how it affected your site. Not that you don’t’ have VERY valid points, just to clarify.
Keywords. The keywords on each page are not the same. A couple of pages have the keywords I gave them, a couple have the craptastic ones they came up with. Oh, and the contract called for 50-70 keywords per page; they gave me 5. – You should not be targeting more than 5 key phrases a page!!! Their contract with 50 to 70 key words (and words are different than phrases) per page promised should be a huge red flag to anyone considering SEO services.
A. The page titles don’t contain the correct keywords. - That's a problem. Search engine love title tags.
B. The meta tags don’t contain the correct keywords. - If by "meta tags" you mean the key word meta tag, that's not a problem. Search engines don't pay attention to those anyway. The only people you're helping with nicely written keyword meta tags are your competition. If by meta tag you mean the description meta tag, that’s a problem.
C. The images have no alt-tags. - This is a big problem on a site with a bunch of images.
Sorry you got burned. That sucks.