To add some salt to your wound, it's 5% off the base fare only. I agree it's pathetic at best, mainly cause the "compensation" actually requires you to spend money with them first before any compensation.
In regards to IFE being luxury: When AC prominently features their IFE in their ads, the pax has an expectation that AC lives up to the advertised promise and deliver. Simply put, you paid for the use of the IFE as part of your fare.