I don't normally recommend a laptop unless you really need the portability, in you can get a lot more for your money with a desktop and  unless you really need the portability they really are your best bet.

I'm sorry to hear about your experiences with Dell, but you are quite correct about the lawsuit, it would most likely be an inordinate waste of time and money.  First thing Dell would most likely do is pay to have the case moved out of small claims court, and then they would most likely tie it up in litigation for years.   They have the legal staff that they can afford to do that sort of thing, and by the time it's all said and done you'll end up spending 10-12 times in legal fees any judgement you might be able to get against them.

However there is another route you might wish to consider, while companies like Dell generally don't respond well to legal pressure, often times they will respond to another form of pressure, namely bad publicity.  I would contact someone at Dell, not someone in their tech department but rather someone in their customer service area and ask to speak to a manager.

Explain your situation and tell them how dissapointed you are in their product.  They will begin with your average song and dance - but don't be dissauded.  Let them know that you expect them to do something about your laptop, and if they refuse you mention that one of the avenues open to you is to contact a local television station and having them do an investigative report.  Ask the person your speaking with for their full name so you can give it to the TV station, and let them know why your asking.

Be polite at all times and always use phrases like "I know you didn't do this" or "I realize this isn't your fault" - but be resolute.  Someone there at Dell has the authority to fix this situation, and you want to speak to that person, and your not going to give up until you do.   The key is not to make it personal, you know the person your speaking with is a good person and wants to help, and you understand that they may not have the authority, you just need them to get you to someone who does have the authority to help.

You'd be amazed at just how far through a bureaucracy this approach will take you.  The key is don't lose your temper and don't take no for an answer.  If the person your speaking with either cannot or will not help you thank them for their help and ask to speak to there boss and just keep going up the chain till someone says yes.  Dell spends millions of dollars a year on advertising, so the $2000 or so it will probably cost them to replace your laptop is chump change by comparision, They probably spend more than that just taking their ad guys out to lunch.

Odds are pretty good if you make a big enough annoyance of yourself that eventually you'll get to a guy who has the authority to send you a new laptop and is willing to do it just to settle the matter and get you off the phone. It's all about persistence.

Now, their going to quote rules and procedures and such to you over and over again, you simply restate your position calmly and tell them that despite their normal procedures that you expect more from a major company like Dell, and that other people do as well.   The second time they quote the same spiel, tell them that you understand their position but are unwilling to accept that as an answer and ask to speak to their boss.

Lol..  I know this all seems a bit much but you'd be amazed at just how well it works.  Spend a couple of afternoons hassling Dell tech support, maybe as much as a week, and eventually odds are very very good they will cave just to get rid of you.