That response was worse than no response. I fully expected to find the (nominal, of course) compensation offered at the end. When all they did was tell you how valuable a customer 1K is to them, while simultaneously discarding your valid concerns with excuses i wouldn't allow out of an 8 yr old, it illustrates the current level of tone deaf within management.
I'm UA Platinum and this really pisses me off. I absolutely do not want to receive an upgrade over a 1K, and would certainly understand if the GA approached me and explained the situation. Of course, I'd be plenty pissed off if I were moved from an E+ seat originally into an open E- middle due to the snafu....But not at the 1K. He/she earned that right.