Capacitor C009 is shunted across the switch. It could be that this cap is shorted, which effectively bypasses the power switch.
But what is puzzling is that if that switch is shorted and you have 120V available after the switch, why don't you see it at the wire going into the F1 fuse?
Things that you can do to isolate the problem:
- Unsolder one side of C009 and see if the switch now works.
- Check fuse F001 again to make sure it is not open and, with power off, check continuity across the two wires that come from the fuse holder.
I can't help you too much more because you need to find a bad component that is preventing 120V from getting to the transformer.
The good news is that I don't think that your transformer is bad and once you get this wiring sorted out it should work.