Whilst I agree that Hilton have no legal obligation to provide $0 rooms, I think that their hands-up attitude sounds fair enough. They could have got aroung it perfectly and taught that greedy fool a perfect lesson.
I am aware that in the USA the rates that you quote are exclusive of taxes state city or anything (In the EEC this is forbidden all prices have to be net of VAT, only city Taxe de Sejour may be aded but these should be notified). Hilton should have honoured the rate and added $50 for provision of bed linen, $50 for provision of TV, $50 for providing a telephone (laugh not, Sheraton in Fort Lauderdale did exactly that)...you get the picture.
I would have given anything to have seen this Smartalec to have rolled up and been susequently thrown out on his ear for not providing sufficient credit. I am so bored with this sort of "clever" behaviour.
Had Hilton charged $1, or indeed 1 cent then they would have a far more difficult time. However silly these $29 fares may be, they do sometimes charge "silly" fares to get headlines and publicity. To reduce this to absurdity, if everyone paid this there would be few decent hotels or airlines left.
Oh, and yes I think that this is exactly what should be on these pages and I am deeply grateful for learning that these sort of things go on.