I understand your fear of Lithium, I don't think I'd want to take that option myself. However, I've rarely heard negative comments from people about it. But It is a bit of a pain with all the blood tests etc.
I personally don't think your shrink has fully diagnosed your particular form of BP. Your mood seems to shift very quickly and your 'hyper' or 'manic' episodes seem too frequent for a type I, II or even Rapid Cycling BP, so I think you should pressure him a little more about that.
I see a lot of similarities between my mood shifts and yours and I fear Cyclothymic BP for myself. Is that something you consider matches your mood shifts? I'm sure you've read up on the different types. Sorry but I've been Googling because of my own fears:
http://www.mixednuts.net/bipolar.html
I'm getting on well with the increased Seroquel, 200mgs a day. It's lost most of it's sedative side effects for me, so doesn't knock me out like it used to but I do notice a levelling of my mood from it.
It can't hurt to give it a try increasing it, there's a lot of room in the dose to play around with. We just don't want a zombified Happyone all day.
I really can't understand your psych's reasoning for trying Prozac especially in mind of BP. I thought Prozac was considered high risk in triggering a manic episode out of all the AD's. Might be worth having a chat about Venlafaxine instead, it's more commonly used as an AD for BP depression (from what I've read). Going on and off it is not particularly fun from my point of view tho, I have to admit. But for me, it's been the best at helping my depression and anxiety.
There are alternative mood stabilisers to Lithium you could talk about too.
I'm not a shrink tho (everything above is from my own experience) and I spose they didn't spend years in university getting the title 'Dr' for nothing, so I really think you should be challenging his diagnosis and getting him to investigate or even experiment with other options a bit more.
Jim