Wow, what a lot of words...
The T&Cs say that you get $100 in the case that 1) "for some reason we’re unable to honor your reservation", 2) the member isn't given the "special gift" of 1000 points or a $10 F&B credit, or 3) there isn't a lounge and the guest isn't offered breakfast. In my attempt to parse out the OP's manifesto, I don't see any of these situations having occurred. The intent is to make things right if the property doesn't honor the benefits, not to give the guest a chance to pull a fast one with a "gotcha" if the benefit isn't immediately and proactively announced.
Hospitality is a two-way street. I'm siding with the manager in shedding a problem guest. "Dear Mrs. Crabapple, we will miss you. Love, Herb".