To the OP - after the FDC told you it was a general line, did you point out the sign? I didn't see you mention that.
I would have politely said "I saw the elite line sign there (pointing at it), so didn't know this was part of the general line" or something similar. You may have received an apology for the confusion and at least fixed the problem for everyone after you that day...even it just meant they removed the sign.
Not to mention that what appears to other customers to be a "DYKWIA moment" and turns it into them understanding that the hotel made a mistake and you were just lining up where the sign told you to.
Kind of seems like if you had spoken that one sentence, this whole thread would be a lot less interesting.