Unfortunately the military can and will do almost anything it wants. The appeals process is terribly skewed and hard to reverse any decisions once they are made. The Navy especially is PICKY about grades.. my younger bro wasnt accepted to NROTC because his GPA wasnt where they felt he should be though he blew everyone out of the water on the ASVAB. So his grades and multiple "injuries" were definately stacked against him
I was going to suggest switching branches but I thought if you got medical discharge they wouldnt accept you in any branch. Especially because you have multiple(though not extreme) injuries. If you can switch branches that would be great. It may not be exactly what you want but it could allow you to be a military pilot, or at least allow you to be in the military.
Are they still going to pay for your education through GI bill since you technically didnt get a dishonerable or OTH discharge? If not.. definately fight for that, even though your GPA is less than stellar, they shouldnt take it away from you when it was their decision to give you the boot.
Im glad that you're chinning up and know that you wanna finish school