Stories like this are why I consider the way airlines deal with status archaic, almost Dickensian. And the dismissive manner with which travel plans are disregarded for a more favored person is rubbing salt in the wound. It could easily be done much better, in terms of CS, but that wouldn't serve the purpose of reinforcing the notion that if you only spend some more money with them, they'd mess with someone else for your benefit. Very much dog eat dog. Which makes sense. For dogs.
I've never had this happen (knock wood), but if it did, I know I'd speak with the favored occupants to find out just how super elite they are. It would be a friendly conversation, since I wouldn't feel they have any responsibility for me being kicked to the curb by the carrier. Depending on how their good fortune happened, I'd make a business decision (as the OP) about using that carrier as a travel partner in the future