Umm, there are federal laws regulating the compensation for involuntary denied boarding that pay a lot of money. A booking category is just that, a separate room type that you are purchasing, at a different price level. There is a finite number of those available rooms, so selling more that what is available is a risk that is taken by the company. Rooms taken out of inventory should be communicated with the customer, so that they have the CHOICE to accept or make other arrangements...hence airlines make opportunities for people to cancel or change with impeding weather situations.
When not given what was paid, the offer should be what is up to the customer of what is good enough. While some may think free dining is great...others don't need/want the free dining, so what good is it to offer someone a bottle of free expensive wine, when they don't drink alcohol? At a bare minimum, the difference in points should have been refunded without even asking between booking category and category given.
The son being ill, i hope he is better and that the vacation isn't a wash out. I would be totally bummed if that was something i planned for, paid for and was denied at the last second. People do a lot of planning...while you or i may plan for rides and restaurants, some people "plan" to just sit on the balcony and people watch..because thats what makes them happy. if you were denied your most looked forward to part of the vacation (which you planned and paid for to ensure that you got what you wanted), its a heartbreak situation that maybe free food doesn't do for you.