Hi Steve too (has anyone complimented you on your name lately?),
I should have mentioned that I couldn't find any language in the GoDaddy TOS that gives them a right to take back the domain after expiration. I suspect that the original OP's problem was with another registrar. Too bad we don't know for sure!
This is the only TOS language on the topic
"By bidding on the Expired Domain Name, Buyer acknowledges and agrees that if Buyer has the winning bid, the transfer of the Expired Domain Name will not be completed until after the expiration period is complete."
"For domain names that are registered with Go Daddy but designated as Expired Domain Names and listed using the Auction format, change of ownership will not be completed until forty five (45) days after the original date of expiration (approximately ten (10) days after the close of the Auction)."
It doesn't explicitly say they can't take it back, but since they use the word "completed", it doesn't seem that they have wiggle room. This is definitely past any redemption period, including the period where the original owner can pay $80 to get it back.
A shallow search didn't show any problems with GoDaddy on this issue, which is more reason to believe that they are not the abuser. (Not that GoDaddy is above this stuff!)
The 60 day non-transfer policy is common among registrars per the GoDaddy support person. Somehow, it's supposed to help prevent domain highjacking. I confirmed that this is also the policy at 1&1.