squeakr

I don't have any specific advice, except that there may be some limits of liability that you agreed to in someway when you book a room at this hotel. I'm not familiar with laws governing personal property at hotels, except that once you're in your room there's usually sign saying the hotel isn't responsible for personal property. Is there anything written on your luggage tag itself that limits their liability?
If your losses are as you suggest, it may be worth at least speaking with an attorney to see what your rights are in the situation. If the insurance company does not want to negotiate with you perhaps they will negotiate with an attorney.
And please do file a police report – in San Francisco the police often don't come to scene of a crime unless there was a weapon involved. Can file a report after the fact which might force the hotel to keep the footage if there's any kind of legal case.

While I'm not always in favor of outing a hotel or other company, it might be helpful to know if this is a large chain hotel or a freestanding establishment. And again not imputing your description, but if it is truly a five-star hotel you may have a different recourse than if it is not.