Things happen, "acceptable" or not, and there certainly were options. You may have lost a little bit of leverage by taking them up on their offer at the time - sitting down to dinner and waiting it out. If you wanted to play hardball, you could have put your foot down right then and there - escalated to highest on-property manager (if that wasn't the "manager" you referred to) and demanded a walk to another property. Outcomes could have been better or worse than what you expected - it could have taken 'til midnight to get somewhere else and the room may or may not have been better.
With respect to after-the-fact service recovery, you could maybe have pressed harder with Guest Assistance during the first communication - though I don't believe that DT has a 100% satisfaction guarantee, so I don't think that that could be invoked. You could probably still PM the hhonors rep here on FT to open up a personal discussion. She has been good about helping resolve these kinds of things.
Me? I would be OK with the 15,000 points and dinner. But that's just me.
Awesome username btw.