The switches I've seen go bad have ports fail or start spewing malformed frames. ARP (convert IP to MAC address) is a layer 3 thing, which consumer switches don't concern themselves with. I'd suspect a device behind the switch, or possibly a switching loop that'd forward frames back into the network.
OK, so let's assume that somehow the switch (or something connected to it) was the root cause for why it was that all of the wireless clients were declining the IPs being suggested by the DHCP server on the 66u. My question then remains, why did changing the SSID change that? Seems like if there were packets interfering with that, those same packets would still be there after the SSID change. For that matter, when I changed the IP subnet to the 192.168.2 network, why didn't that fix the issue?
I am just puzzled over this one. I suppose it could be that there is something with the iOS devices that was the root cause. There were 7 of them (all running iOS 6.0.1) and apple did just release iOS 6.0.2 on 12/18/2012 that "fixes a bug that could impact Wi-Fi." Maybe we should just chalk it up to that being the issue and that somehow changing the SSID was a workaround for whatever Apple thinks they have now fixed with 6.0.2.
Sure wish Apple was a little more clear on what the patches do.