Ganefe has a very valid point. Bob... I think if you had a valid discount with any company and they treated you in a bad manner you would want an explanation!
The two companies might be owned seperately, but they actually have some agreement between them. You should read some of the boards and here elite flyers complain when codeshared airlines treat them less than they expect.
I am glad your ban was lifted, it does not seem reasonable for a company to tell you one thing in writing and then a crackpot to call you and not put anything in writing. How do you know who it is when they call you if they are not willing to follow it up in writing?
I think you have handled the situation very well. If it saves you $110/day I would rent from them again. That is an outrageous fee.