Yeah, not sure what's going on. I will definitely press the hotel to honor my original email confirmation. I have been checking all-in rates for my stay for the last few days since I made the award reservation (I have two award room reserved and might want to switch one to a paid stay). I think it was on Friday that the all-in rates went up a bunch and I think it was the imposition of this "service charge" that made the rates go up now that I think about it.
I am surprised (and a bit disturbed) they can quietly amend the online reservation like that without kicking off some kind of email to the reservation holder. Makes me what to double check my other 20+ reservations!