It wasn't necessarily a bad move. You don't know what this dealer paid for the car. You're making assumptions here. And on the dealer's side, he probably sees you as a lowballer wasting his time.
If you see yourself as being allowed to strike the best deal for yourself, then how come the dealer isn't allowed to strike the best deal for himself?
The dealer will have to appeal to buyers, but that buyer doesn't have to be you.
You're losing out because now you don't have a car. Don't assume that the dealer is the loser. You're both losers here.
You seriously seem to have a sour attitude about this. The difference was $350. Now $350 on its own is a lot, but looking at the big picture you were arguing over 2% of the cost. How many hours have you spent complaining about this? Now add on the time you also have to spend looking at ads again, going to other dealers and negotiating with them. Is all this worth your $350?