I know how you feel LittleMissSunshine....
I'm having the exact same dilemma as you. I am literally no more than half a centimetre out and BA were having none of it.
I have since been for 2 more interviews, one with Virgin and the other with bmi. Virgin I didn't get measured but didn't make it through the first half, bmi, I got through the first part but not the second, but was not measured, so there is some hope.
I'm going to reapply for Virgin again in July and see what happens. I know what my mistakes were in the interviews so lets just hope my height doesn't get in the way.
I think it's really unfair given the fact that I have loads of experience in customer service and aviation and all I want to do is fly and it's not even the CAA making the rule, it's the airline that stipulates the height.
It would be good if we could stay in touch because it sounds as though we could be of help to eachother!