After trying a wide variety of options over a period of two intensive and enormously frustrating days, only to be faced with the cryptic and utterly unhelpful "invalid binary" message, I reviewed this post again.
When I reviewed avaynshtok's question - "You mean when you submit the binary, you have to select the distribution profile. However in the Code Signing section of the build settings, you still want the developer profile selected for the release build configuration, correct?"
Although it wasn't answered, it got me to think about the profile you select when you are in Organizer and select the "Submit" button. I took another look and realized that you need to set the distribution profile there, for which I had been just accepting the default until now.
So, I set my "AppStore" archiving profile back to use the development certificates, as suggested above. I then resubmitted using the distribution profile at the Organizer "submit" time, and voila - it passed.
Question to Apple: you guys have $70,000,000,000 in cash. Can you afford to update the apps store submission procedure docs and "invalid binary" message to be a tad more clear? I'd be fired if I produced such low quality work.