So what happened was slightly different than what they told me in the first few emails. But the GOOD news is that it became even easier.
My situation was a little different as I've had a PS from very early on so I was on the old system where you were unable to have domains on shared and PS hosting under the same account.
So with a request to support, eventually I found out that they were able to upgrade my PS hosting account so I'm now able to have 1 account with domains on shared and PS hosting.
No need to cancel and reapply or anything silly like that, they were able to do it all internally.
The only slow point for me was the ftp transfer of downloading the site from the old user and then uploading it to the new user.
NOTE: BACKUP your site BEFORE going through the new user process. I had some interesting results with the "tick this box to copy your site to the new user" Do not rely on this feature yet!
The other good news is that I'm already seeing a load decrease on my PS which makes it all the more worth while.
Keep up the great work DH!