When I brought my old car in for transmission service, the guy was using old engine oil and transmission fluid to heat his shop. Not sure if that counts as "recycling," but I guess it beats dumping it in a storm drain.
There are few companies that recycle oil, and one is Safety-Kleen: http://www.safety-kleen.com . For an oil to be recycled it not only has to be filtered to remove contaminants [more than just filtering is done in the process], but additives & VII's have to be replenished for it to meet the oil grade requirements and standards. Your trans service was just a flush and filtering.
When my stash runs out, I will consider using a recycled product. I hear that Super-Tech is a recycled oil, but I have not seen any documentation to back it up.
"Re-Refined" oil is still pretty expensive when competing with all the new stuff that's made. I'm still convinced that lubricants are just a value added co-product of the cracking process (you have to do something with them). Supply streams are more cost effective for the new stuff (collection of used oil has got to be more expensive) and the process and content costs are the same or close to the same for both.
Recycled is a misnomer in most cases. It's usually (or so I recall) used as fuel.
Safety Kleen is already in the hazmat disposal business, I'd bet that's why they are one of the few exploring rerefining. Their costs are offset by their customers paying for oil disposal services and they utilize existing collection/distribution routes.
A local parts store uses Safety Kleen oil and filter recycling services. Not sure where it goes, but it's free so that's always nice. Speaking of which, I've got 5 quarts and a filter to take them still...
The majority of motor oil which is collected for recycling ends up as fuel for ships, cement plants and other heavy fuel users. A minority of it actually gets re-refined by companies like Safety-Kleen into new motor oil.
Some shops buy a motor oil burning furnace and use it for heat.
Years ago they sold a line of re-refined oils at Walmart. I remember this topic came up like a year ago and I emailed the nearest distributor who told me that they were trying to get the oils back on walmart shelves because of the "green" movement hopefully pushing sales this time around.