Well I wanted to share some resolution on this thread. After taking the X for a second opinion I was told of course it is worth fixing. A inspection/test of the LCM and ABS module showed that they were both functioning ok and lead the shop to look at a problem somewhere further down the electrical line. The brake light switch was replaced again as a precautionary measure (just in case I somehow managed to screw it up - unlikely but for $50 up front worth it IMHO) but the problem persisted. Indications were that there was a short somewhere so the entire tail light assembly was swapped out with a used one and it cleared the ABS trifecta and the brake lights work correctly now. My mechanic assumes that when the brake lights were stuck on a signal was being passed along the bus that the brakes were on but there was no corresponding signal that brake hydraulics had been applied and this was confusing the brain. It makes sense to me..and it is fixed!

Clock spring replaced (thanks E38Flagship) but now because of the very cold winter i'm having the PCV repair done and a cracked axle boot replaced. No final bill yet but I'll be back to driving my baby in no time (and hopefully for another 200k).

Thanks Outpost members for your thoughts and advice.

Mike