The problem with most of these backyard breeders, hobby breeders, or whatever you want to call them is that they are producing puppies to make money, not spend money. They have not prepared to deal with the financial responsibility of producing a sick puppy. They will happily give you another puppy since they can easily produce more puppies, but they won't part with their money.
You live in New York, right? New York is very progressive with puppy lemon laws. They have found in favor of the consumer time and time again in cases where a puppy got sick. It might be worth bringing a case in small claims court to try to recover some of the vet bills.
It's time we start holding these greeders and irresponsible breeders financially accountable. You can't replace a puppy like a defective product under warranty!