I'm not sure why this discussion got so twisted up on the minor point about missing toiletries. Clearly the reason for your frustration, and the reason compensation is reasonable, is that you booked a room advertised as available and then had to wait over an hour, late at night, because it wasn't ready.

Having said that, I understand from the hotel's point of view how this could have happened. There are actually a number of ways a mixup, miscommunication, or poor decision could have been made that resulted in this happening. I think it's an honest enough mistake that nobody has to be fired for it-- and to your credit you're not asking for that. You're just asking for service recovery in light of the inconvenience you experienced -- the hour-long wait -- and what you're asking for is reasonable. I'm glad you're getting constructive response from hotel management now.