Sorry to hear your story, NYC has more than it's share of inconsiderate twits. The policy, as best as I can tell, in NYC is "pay up or shut up".

I have been very lucky as a Diamond for the past three years. I've been put up in the Presidential Suite at a Waldorf Astoria; been given a (very expensive) free dinner at the Hilton Bentley, been given at least 20 very nice suites as free upgrades at (non airport) Hiltons and Doubletrees. Plus all the free food and drinks in lounges and the dozen or so bottles of wine put in various rooms and (literally) hundreds of free breakfast because of the Diamond status.

Seems to be, if I stay at a property that is not near an airport and isn't a Hampton Inn (no disrespect, they just don't seem to offer much and are no cheaper than a HGI), I will do fairly well. I can't speak highly enough of the Waldorf chain, as they seem to go above and beyond (so far) for their Diamond guest.