The thread contains lots of posts, but is an entertaining read. To sum up the thread:

1. Many FTers made reservations at the Starwood website for a too good to be true offer at the Lanesborough in London.

2. Eventually the Lanesborough contacted all who made a reservation and informed them that a mistake had been made and the reservation would not be honored.

3. A boatload (or 747 load) of FTers complained to the Lanesborough, SPG/Starwood, and a third party booking website where some of the folks made reservations rather than at Starwood. (I think Travelocity or maybe Orbitz) .

4. Eventually the third party booker informed all those who made the reservation at their website that even though the property would not provide the room for the reserved stay at the reserved price, the third party booker would reimburse its customers for any charges by the property over and above the reserved price.

5. Facing this humiliation, the Lanesborough recontacted those who booked directly through Starwood, and offered a short term stay, without the perks that were part of the original offer and gave a certain period of time to either accept the offer or face cancellation of the reservation.

6. Some folks, including the one you cite, accepted the Lanesborough's offer and, therefore gave up various perks included in the original offer and the right to make a reservation for longer than the minimal amount of days included in the Lanesborough's final offer.

I'm recalling this from memory and so while the general outline above is accurate, I am not certain of every detail.