A spectacular room was booked, they downgraded him but didn't give him a break on the rate. Of course, if he wanted to upgrade they'd ask for more money. So - you should at least get some $$$ back for the price difference between the two room types.
Barring that, when they said that NOTHING was left, I would have said - are you sure? Even the Mega-Wow suites? Is this how you treat guests who take the time to make a confirmed reservation in advance?
Ironically, I was there last night in the 7th floor Living Room bar. It was jumping - that's for certain. Don't know how many were guests (I wasn't).