Sounds to me as though you got a good deal.

They overbooked. Nothing new. You turned down their standard offer to get you a room elsewhere. You worked out a nice deal for two free nights anywhere, but didn't think to have them put it in writing. Then somehow you worked out an even better deal for 80K points. Yes, you had some trouble getting it. Nothing new. But you got it.

80K at a value of almost two cents per point (if used as part of the cost of an air/hotel award package) comes to nearly $1,600. Not bad!

And it shouldn't matter whether your room was prepaid or not. It's all the same to Marriott. If you don't show, you lose what you paid. If you are a no-show without prepayment, your credit card gets charged. Same result. They don't have any knowledge that you are more likely to show up than the guy that guaranteed with a credit card. In fact, you (in their eyes) might be less likely to show. At least the credit card guy can usually save his money if he cancels that day. You already paid, and have less incentive to cancel if you can't get there.

It sounds to me that they did care a lot. Or they wouldn't have given you such handsome compensation. The fact that follow-through wasn't great wouldn't surprise any of us for almost any hospitality company!