At lest a broken IFE or seat motor can be financially valued and thus be compensated. FWIW all airlines heavily advertise IFEs, lie-flats, etc. and a customer reasonably expects that the offered functions work. A lie-flat stuck in the seat position is at best a glorified economy seat and certainly not worth X,000$ for a long haul flight.

As far as smell is concerned, I haven't seen any airline advertised their cabins as smell free. I think all of us have been in an aircraft where someone had to make use of the bag and the subsequent smell. It's not nice, but that's life. It's not like the airline made the kid puke. And where do you draw the line? Should you get compensation if you're placed to an unwashed, smelly passenger?