I'm quite sure it's not illegal to melt those coins. I don't know where people get that idea. It's illegal to deface or shave coins and THEN pass them as current. The difference is in the act of spending the damaged coin, not in simply damaging it. So if you melted them into an ingot and tried to spend it as if it were say $1's worth then that's illegal because the work put into the valuation by the mint is gone - no form, no assayage, nothing - just a lump of unknown metal.
Pawnshops, for me, are always hit and miss. I return to the good ones even if they get wise to the "coin guys" because they respect who taught them what they know. Most, though, maybe 90% of pawnshops just hate coin people and have ridiculous markups on their prices. It's a tricky game of who knows more without overtly saying so. If you justify a price in your head you make the other wiser and you just have to play "dumb" with numbers to get what you want in these places. That's just how it is with 90% of them. Good deal you got - congrats!