According to the dealer, they have never heard of a vehicle using ATF, and don't see why I am having any sort of problem with the situation. The only reason he is giving me the time of day, is because he knows who I am.
From what I have gathered, I can pay them (again) to have the system flushed and ATF installed.
Most all Toyota's are shipped from the factory with hydraulic/power steering fluid in them. Other than spacial cases (like Honda) most power steering fluid is hydraulic fluid. It's a basic oil with antiwear, anti foam, etc, agents, made to be pumped.
ATF is the same base with more additives, friction modifiers, additional detergents to deal with the clutches, red dye, etc. These extra additives would be considered contaminants in a pure hydraulic system like power steering. ATF will work fine, but hydraulic/power steering fluid is more resistant to cavitation and associated problems, making it a higher performance fluid in this application.
The ATF refill thing is likely because it works, is a much more common fluid in shops than hydraulic fluid and eliminates the confusion of, do I use power steering fluid that says it for GM, Honda, etc. I have run Mobil DTE light ISO32 in all of my Toyota's and the rigs that I worked on with great results, it's very good fluid. Several times have had rigs that would get hot, groan, whine, when wheeling, flush out the ATF, refill with hydraulic fluid and problem solved. IMHO the dealer put the best fluid for the application in your rig.