What happened to the good old Lifeguard status, wasn't that in the pilot-controller glossary?
I flew EMS in a fairly busy area and we had specific assigned transponder codes, so ATC knew who we were and were pretty good at allowing us in between fixed wing traffic, even with the field IMC.
Rarely I had to push Lifeguard to get through, maybe a couple of times, and ATC never questioned our altitude restrictions because we regularly met with the ATC folks in Approach and TWR.
I see a few factors possibly affecting the above situation.
1) the fairly recent midair in DC between the Army Blackhawk and the regional jet
2) The EMS pilot not being deliberate in requesting Lifeguard and THAT leading to him not explaining the reason for not being able to climb (perceived HIPPA limitations?)
3) Pilot fairly new to the area of operations
4) The controller arrogant attitude.
Like someone posted above, I would really like to listen to the taped phone call.