Great... legally speaking, I can expect nothing back.

What a company can do and what a company does are entirely different subjects. I also had Aloha airfare booked with United frequent flyer points. They quickly rebooked me on a combination of Island Air and Hawaiian. Did they have to do so? I'm sure that they didn't. This is a case of service to the customer out weighing the letter of the law.

I expect Citi to refund the Thank You points I used in this transaction. Are they bound to do so? Apparently not. Do I care? No.