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BUT.....i now have a lower cost base so if the stock rises back up and i sell i now have a gain to report - if i sell the stock at the original sell price then my new gain exactly offset the "wash" loss.....?

You missed a step in dealing with wash sales. The loss isn't "lost" - it is simply deferred. You accomplish the deferral by adding the loss into the cost of the replacement shares. So you don't really have a lower cost basis. In your example (from a prior post and my memory), your basis in the shares after the wash sale is the $80 you paid plus the $10 of loss from the wash sale. So you get the benefit of the loss on the wash sale when you ultimately sell the replacement shares.

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