The below was the summary of it, and the important part to me. If the review was a chance, I guess they could have told you right there. They are very strict to this issue as per my senator. Again you are the final person in charge to make the decision. I went through the same thinking in my mind, but looking back, I made a right decision to reapply right the way. You are in different field office, and my help to you is for advice purpose only.
Title 8 CFR par 334.2(b) allows an applicant to file their application up to 90 days prior to the completion of the required period of residence. Therefore, the earliest you were eligible to file your N400 was November 4, 2011. You filed your application on November 3, 2010, one day before your first eligible date………….. You failed to establish your eligibility for citizenship. Consequently, this application is hereby DENIED………………Please note that you may be eligible to reapply for naturalization at your discretion as you now meet the residence requirements for naturalization defined by INA par 316.
The letter included the form to appeal with more legal information as well.
Thanks a lot! So basically it says application's denied, and not citizenship.