Sorry to say but I think your expectations are too high. This is a 6 year old car (let's forget it is an S Type for a minute) and so is 3 years out of manufacturer warranty. The warranty you were given when you purchased is very specific in its terms, one of which is that it lasts for 12 months, then ceases.
Now going back to it being an S Type Jag, well one of the drawbacks of owning a "prestigeous" car is the cost of maintaining it, including repairs.
If I were you I'd take up Jaguar's offer & ask the supplier to match that with 50% of the labour, but then of course I'm not stumping up the rest am I!
Good luck
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