No, you received part of what you paid for (i.e. flight tickets, but not Avios points). The promise of the Avios and the advertisements were material inducements to consumers to buy the tickets. Failure to provide those Avios would at a minimum constitute a breach of the agreement, and I would expect a CC company to side with its customer and void the purchase. At worst (if Iberia never intended to provide the Avios) it would constitute fraud.

Lots of hand wringing here, but the most likely explanation is that Iberia knows exactly what it is doing and made a calculated determination that the infusion of cash outweighs the cost of the time and redemption limited points.