Appeal process is based all on the state doctors report but now you are in front of a law judge that will have the last word on the decision. The state will also have their attorney present to fight the case. The appeal system is just as bad as the system you are dealing with now. If you do appeal, if interested I have a name of a attorney a lot of cops and firemen use in this area.(just pm me.)
If the state doctor said you are unable to preform your full duties then I would have to say you should be granted your NYSD. How many ime's did they send you to? What happens with the NYS and the same goes for WC with insurance companies the state will send you to more than one ime until they get the answer they are looking for. They find it and then the state will stick with that report. You are dealing with some very nasty people in the state system and could careless about you or what you are going through. (just look at the time frame you have been waiting)
This has happened to me the state sent me to three ime's the first two said unable to preform my duties the last ime is the report they were looking for and the state fought my case with his report and that took about two years. Read post #2 and 63
http://www.injuredworkersofnewyork.org/