If those are his only round ratings, then the TD would be totally justified in requiring him to play intermediate. But I don't think he should be required to play advanced.
Erock's post with the round ratings keeps getting quoted, but (and he's pointed it out as well) there's a typo. The middle round was a ~975, not ~875 round. So the OP's average rating for that event was around 950. I noted it earlier in the thread, but I'll do it again...the MA1 winner at the event, while playing a different layout, averaged a 953 rating for the weekend.
That's not to say that the OP was "bagging" that event, only that his play that weekend was most certainly MA1 caliber both by general PDGA standards and by local "tradition" based division standards.
The TD is absolutely correct to disallow the OP from playing Rec again. As a non-member, the OP has no recourse to argue. I'd say the TD would be within reason to disallow the OP from playing Intermediate as well based on the evidence he has (after all, were the OP a member during the first event, and it remained his only event, he'd have a 950ish rating).
I'd say if the OP is arguing with the TD to play Rec again and is successful, the rest of the Rec division should either play up in Intermediate (the entry is the same) or sign up for Novice (presuming their ratings allow it, which based on the past event, is likely). Make a statement if the TD isn't willing to.