I am sure it may have been said, but I totally disagree with situational ethics. I believe you have to have a heart and insight to do what is right.
What is right is to honor people when they make a mistake. Hilton and Sheraton have both done this the other way... (get to the hotel and the wrong rate comes up, they reduce it and appologize). I think that we have to be reasonable. ZERO is definitly a mistake....
Also, I am certain that Hilton has something on their site about rates quoted or mistakes. I do think they can fix this by putting in some checking rule that if the rate comes back under $1 error the screen. But they didn't.
What they did is offer a reasonable offer. The are giving the first night free and other nights at 1/2 off the best rate. So if you were honestly looking for the best rate for that hotel.. you are saving over 50%. I would ask for maybe hotel credit for all nights, since you want to keep your status,etc... but that is all I would do.
I do not know if Hilton is legally obligated past that. And also, in the court of public opinion, they handled this alot better than United...
Kudos to Hilton for a job well done. I hope others understand that they did make a good faith gesture!