The EU Compensation laws are still a little confusing to me in terms of which countries participate and what the entitlements are but the wikipedia article is here:
http://en.wikipedia.org/wiki/Europea...ation_261/2004
Based on the length of the delay--- 7 hours but not overnight-- the OP would be entitled to "refreshments" like a meal voucher, which, if not offered, I would request, but only if I can back up my out-of-pocket expenses with a reciept. And of course assuming I am reading and interpreting this correctly.
I would also request Original Routing Credit so that the AA segment mileage can be collected.
As to the broken armrest, I would go through with submitting the form the FA handed out. It doesn't matter that you paid for the upgrade with the CP certs; that is a benefit given to you and you chose to trade it in for the Envoy flight, meaning there was some value placed on the Envoy upgrade, and that entitles you to the same experience as a customer who paid for Envoy (bought the ticket outright, upgraded with miles, or cheap upgrade at the airport).
And I'd drop a note to US regarding the station manager. As I understand, many employees save up the A&B's and turn them all in at once, because they're used for entries into a lottery, and more entries = greater chances of winning. If your station manager holds onto them, her supervisors might not know of her good performance for months.