The same thing happened to me.  I opened mine up and tried to bend the LED wires back into shape so that the switch would work okay.  I couldn't get it right and finally gave up.
I have carried both a photon II and the pulsar II in my pocket with keys and other goodies.  I have never had this problem with my photon II.  I would have to say that the switch is better in the photons.
The pulsars are just as nice, though, when they work.  I'm currently building a micro PSK and I have a pulsar II in it.  Partly because I had an extra new one lying around.  I figure it will be fine if I ever need to start using it, but I don't expect to be able to change batteries and keep going with it like I have with the photons.
This is one data point though; maybe I just had a slightly inferior pulsar.  But hearing your similar switch problems just reinforces my preference for the photons.
Good luck trying to fix yours.
Cheers,
Mike