I deleted my domain because I want to move it to a different server without having to pay to renew here.
However, now it's being held hostage by godaddy's registry. How can I get this so I can register it on another site? It was very misleading that I would be allowed to do this immediately.
Reading other forum posts, I might not ever be able to get it back? Why was this not laid out immediately? Putting it up for auction would be incredibly shady, and if I have to get it back here (After deleting), please let me know how it would be possible. It's stuck in limbo right now.
I am not sure where you found instructions to delete your domain in order to change servers, but this is not a good idea because the registries (note that GoDaddy is not the registry) mandate an extended hold before releasing and there's a chance that someone else snags the domain.
Check if you are able to recover the domain into your account:
If not, contact support directly to see if you have another option available.
The best bet is to keep the domain in good standing in your account. If you just want to change hosting this can be done with nameservers or DNS records. If you want to move the domain to a different company this is done with a domain transfer.