That analogy from the revenue management agent was way off the mark, and they also implied the OP is dishonest for trying to take advantage of the hotel.

The OP was booking a hotel room in Orlando in June, a freakin' hot month. My guess is that same hotel has rooms available on Priceline right now for the same period for $40-$50.

But since the hotel seems set on the $99 rate, I would ask for a few extra things thrown in (well, I would probably just take the $99 confirmed suite, but since the OP's sole reason for taking this trip was the $28 hotel rate, I think they should get a little more). This hotel is a catagory 4, so 10k points a night. The hotel has already offered 5k points, so ask for 10k, the equivelent of a free night. Then, as others have mentioned, ask for free breakfast. That way you'd be giving the hotel $99/night and they'd be providing you with a suite, breakfast, parking, and some points. The points might cost them a little real money, but the other items are low/no cost for them. The parking and breakfast might be worth ~%40/night total and the 10k points might be worth $200-$300, so I'd think that would be fair. Use the 10k points at a nice hotel for a night (or 2 using cash and points) and raise a toast the the Westin Orlando's mistake.

Right now you know the hotel won't honor the rate they already agreed to (by posting the rate), so it's up to you to tell them what they can do to make it up to you. Stay reasonable (and I think asking for items that cost the hotel nothing is reasonable) and you're likely to be happy with the deal.