Very unfortunate this, and yes a poor way to remember your First flight.

As a farmer / chicken owner: Pasteurised egg is safe to eat, if properly handled and served rapidly after decanting from the container. It's similar to pasteurised milk in that respect. Eating raw eggs is not common in the West, but in other cultures it's quite acceptable, plus of course things like mayonnaise and salad dressings come from raw eggs. For some people with protein issues in their diet, eating raw eggs is how they start their day. So there's no reason to feel nauseous from that (narrow) perspective.

As to whether 17k Avios is acceptable, in a way that's a very personal issue. The fact that you rejected the offer suggests that it didn't work for you, and that's quite understandable. Hopefully your wife only had a small amount and will recover shortly.