1. GE is a privilege not a right. Presuming that OP is a USN, he has a right to enter the USA. But, that doesn't mean that he's entitled to expedited handling which is essentially what GE is all about.
2. OP says that he was denied for being "less than forthcoming". Remember, the CBP Officer likely had OP's entire record in front of him. The Officer didn't need the details, he was just trying to see if OP accurately self-reported his record of arrests.
3. Given that OP presumably knew that his record, both for criminal arrests and deportation (or exclusion) would be an issue, it would have been smart for OP to have gone back over the details and been crystal clear about them. Not suggesting that just being honest gets you over the hurdle, but not being honest is an outright denial.
Treating encounters such as this (and apparently the same way with OP's flip comment to Canadian authorities), is not a good idea. They may appear casual, but they are not. The entire purpose of having an in-person GE interview is for CBP to assess the applicant. Otherwise, CBP could simply mail the card and one could have one's photo & prints taken anywhere and anytime.