I am very confused.

A guest at the Union Sq. Hotel picks up the room phone, dials the number listed, and orders food. The food is delivered to the guest's room. Exactly what part of that operation isn't room service?

Think of it as a codeshare, where the hotel provides the room and communications, and the hotel's partner provides the food and the delivery drone.

It is extremely common for smaller hotels to have an affiliate restaurant -- that is, a restaurant that operates in the same or a nearby building as the hotel, that is independently operated, and that has a special arrangement with the hotel for the latter's guests (room service, etc.). I don't see the issue.

Some people don't care to acknowledge that there is a risk factor with Priceline hotels, and that risk factor is why you pay a lot less. The main risks are that the location will be crummy, that you'll want to change/cancel your reservation, that you'll get a sub-par property, or that you'll be assigned the worst room in the property. If you're not willing to accept those risks, don't use Priceline.

But to complain that the hotel doesn't offer room simply because the hotel has partnered with another company to provide the room service is preposterous. (IMIO, of course.)